Human Capital

SDG8

In our VISION 2030—Clean Energy of Tomorrow, we have set a long-term goal to maintain the position as an employer of choice. In other words, we want to sustain the reputation as a desirable company that is also a top employer. To achieve this, we devote a lot of time and energy to nurturing our current employees and attracting future talent.

Responsible Employer

GRI 2–7, 2–30, 3–3, 401–1, 401–2, 401–3, 405–1, G4–EU15

The energy sector has always been dependent on a highly qualified workforce. Given the current ESG impacts, the entire energy industry is undergoing an unprecedented transformation that underscores the need for human capital development and talent management. Without competent and committed employees, we cannot provide a stable and secure supply and innovative solutions to our customers. Our employees are paramount to our success.

To fulfil our vision, we create working conditions that foster employee loyalty and high satisfaction and attract suitable candidates with the right skills. In practice, we promote equal opportunities, stimulate fair treatment and open communication, encourage diversity, offer workplace flexibility, and in some cases enable a better work–life balance. We apply the basic principles of CEZ Group’s social policy both in Czechia and abroad. To demonstrate our commitment, we have embedded our approach into the collective agreements, policies (e.g., Diversity & Inclusion Policy), and internal guidelines. For example, in CEZ Group we signed collective agreements valid until 2027, which is quite exceptional given the country (in the Czech Republic) and energy sector standard. In this way, we provide employees with long–term reassurance about their rights, remuneration, and benefits.

The implementation of our ESG strategy requires us to address the implications for employees affected by coal exit. We continue to prepare for the phase–out and associated closure or transformation of our coal production sites, which will have a number of social impacts. We have made a public commitment to provide reassignment, requalification, retraining or compensation to all employees affected by coal exit.

Since 2021, we have managed a parity task force from the HR level that regularly addresses the impact of coal operations closures on employees. This platform brings together management and employee representatives, such as union presidents from the affected sites. The employer and employee representatives discuss concrete plans for the future of employees affected by the coal phase–out based on these priorities:

to maintain the necessary employment in the affected localities until their closure,
to employ existing staff in the jobs created by the transformation of the sites, both during construction and during subsequent operation,
to employ existing employees on the CEZ Group's internal labor market,
provide a superior social programme for redundant employees.

To meet these priorities, we apply the following:

measures are set out in the collective agreement (above–standard severance pay),
specific motivational elements (bonuses, target bonuses),
retraining of employees,
specific tools in the recruitment and selection process (applications supporting the internal labor market and internal career days, mobility support),
outplacement program,
cooperation with institutions in the region.

As part of our efforts to advance corporate responsibility and remain an employer of choice, we also support the employment of people with disabilities and parents returning from parental leave. In addition, we actively work with the needs of employees in different age groups. In line with European law (GDPR), we do not record employees’ race and ethnicity. Ultimately, we want to create an inclusive environment where every employee can develop their full potential and grow professionally.

We provide competitive remuneration with respect to gender neutrality and the principle of equal pay for equal or equivalent work. Depending on the performance of the company, team, and individuals, we adjust salaries accordingly each year. Moreover, we offer our employees a wide range of financial and non–financial benefits and incentives related to:

welfare (e.g., 37.5–hour workweek, 1 week of vacation in addition to the legal limit, life insurance, pension scheme, loans and leases, meal allowance, life anniversary reward),
healthcare (e.g., sick days, above–standard health examinations, health days, online healthcare service),

mental health care (psychological helpline, webinars, individual consultations, psychological first aid, coaching, mentoring),
social care (e.g., retirement severance pay, increased severance pay, social assistance in cases of emergency),
other care (e.g., benefits contribution account, childcare, summer day camps, employee events, pay for retraining, pensioners’ clubs).

In addition to mandatory social security levies, most CEZ Group companies contribute to voluntary programs of supplementary pension schemes of their employees (this obligation is usually part of collective agreements). The condition for the employer's contribution (usually 3% of the employee's assessment base for pension insurance and social security; the maximum contribution is limited) is a minimum regular contribution from the employee's own resources. Over 60% of CEZ Group employees participate in voluntary programs of supplementary pension schemes.

We see the use of AI in learning and development as a challenge. We are dedicated to educating employees in this area, while testing specific uses in the context of feedback analysis and other learning content.

At the end of 2023, ČEZ, a. s., was awarded the "Strength" classification in knowledge management, specifically for the Expert Technical Group tool, by the World Association of Nuclear Operators (WANO) as part of a Corporate Peer Review Mission. This award confirms CEZ Group's long–term focus on knowledge management, the systematic management and development of employees' knowledge and skills.

CEZ Group also regularly verifies the employer’s attractivity and the level of corporate culture through feedback from its current employees. The employee survey was conducted in 2023 by an external survey agency Ipsos. In the basic metrics of employee engagement and the level of recommendation of ČEZ, a. s., as an employer, we are significantly above the average market values and the values of a sample of large companies (over 500 employees) in the Czech Republic.

Diversity of Employees

Diversity of Governing Bodies

Diversity of Managerial Positions

In 2023, 3,775 new colleagues joined CEZ Group, of which about 25% were women. In Czechia, the interest in working for the parent company ČEZ, a. s., grew for the fifth consecutive year. In total, 578 new employees were hired by ČEZ, a. s., of which about one third were employees under 29 years of age.

New Employee Hires

Employee Turnover

Parental Leave

Persons with disabilities accounted for approximately 2% of CEZ Group employees in 2023, and their total number reached 583.

In Czechia, some companies with more than 25 employees failed to meet the legal requirement to employ persons with disabilities (at least 4% of the total workforce). However, these companies complied with their duty by:

purchasing products and services from companies employing persons with disabilities or self–employed persons with disabilities (total compensation from selected subsidiaries of CZK 105.3 milion)
paying a levy to the state budget (total levy of CZK 10.9 milion)

CEZ Group fully respects and upholds fundamental labor rights, such as freedom of assembly and right to collective bargaining, which are guaranteed by our Code of Conduct, international treaties, and Czech Law. We are proud to have outstanding relationships with dozens of trade unions active across CEZ Group. The management communicates with them openly and continuously about its intentions and results. Union representation within large companies of CEZ Group in Czechia is around 33%, and over 50% in Poland. In 2023, there were 57 trade unions in selected CEZ Group companies and the collective bargaining agreements covered 24,716 (81%) of our employees. The management of some CEZ Group companies regularly participates in meetings with trade unions. More information on trade union relations in CEZ Group is available in the CEZ Group 2023 Annual Financial Report.

The European Works Council (EWC) has been operating in CEZ Group since 2007. In 2023, the CEZ EWC members were elected for its fifth term of office. At the same time, the number of members increased year–on–year by 1 representative from Romania, which was already represented in the CEZ EWC once. At the end of 2023, the EWC had a total of 22 members, with 14 members from the Czech Republic, 2 from Poland, 4 from Germany, 1 from Slovakia and 1 from Romania. In the same year, two meetings of the CEZ EWC were held in Prague. The subject of the meetings was mainly related to strategy, economic results, operations on foreign markets, as well as conventional energy, the development of renewable sources and new nuclear sources in the Czech Republic.

Our recruitment strategy relies heavily on personal contact and the transfer of experience directly from our industry experts. This approach mainly targets pupils and students from primary schools to universities. To maintain our competitive advantage and to benefit from the experience of our colleagues, we have created a database of educational podcasts and videos available on the CEZ Group Virtual World website. Together with the svetenergie.cz web portal, Facebook, Instagram and LinkedIn profiles, and other channels, we create an online space for active contact with students and job seekers.

Employee Training and Development

GRI 3–3, 404–1, 404–2, 404–3, ESRS G1–3

Training and development are seen in our companies as an investment in the future. The key factor in CEZ Group’s success has always been the professional performance of our employees. Training and development contribute to the permanent and systematic development of employees of CEZ Group companies, which is necessary for the long–term safe and effective performance of their current and potential work activities, and boost of productivity. Training and development are defined as one of the essential tools to systematically develop corporate culture.

The expected work behavior of employees, management and strategic management is defined in internal management documentation. Policies and procedures are defined by the work documentation. Training and development are provided to our full and part–time employees.

The continuous evolution of the business determines the need for new technical and expert knowledge and skills. In this context, the central pillars of our training and development strategy are:

mandatory trainings – legal requirements for employee training and professional expertise for every position,
programs that promote a culture of knowledge and experience–sharing to ensure safety, employee productivity boost, and intergenerational renewal in the long–term,
reskilling programs, aimed at acquiring new skills to fill positions or roles different from previous ones,
upskilling initiatives to optimize performance to meet new requirements,
lifelong learning to ensure constant updating and competitiveness of our employees and to achieve principles of being a learning organization.

Our training and development strategy includes strategic objectives, needs analysis, evaluation, and progress/performance monitoring (to increase productivity). We use these inputs to analyze development needs to support the setting of optimal training and development priorities:

Strategic targets and priorities (VISION 2030—Clean Energy of Tomorrow) for CEZ Group and subsidiaries,
Employee engagement survey results,
Results of regular evaluation of employees’ performance,
Legal requirements,
The business unit’s needs,
Development diagnostics results.

We have established a systematic approach to meet legal requirements for employee training and professional expertise, with safety as our top priority. Every employee has an individual mandatory training plan for the given position.

Besides mandatory legal training, we offer a wide range of optional activities that employees can use for their professional and personal development. Employee training and development is available in three categories: for managers, for teams, and for individuals. Our goal is to cover every part of the talent management process.

Based on the results of employee evaluation or development diagnostics, employees pursue their individual development goals and plans. In individual cases, employees can study when they need to expand their knowledge (e.g., an MBA degree) or upgrade skills for their future position or career path (e.g., secondary school, university).

Mandatory training for all CEZ Group employees includes topics linked to:

legal requirements (e.g., occupational safety, fire protection, information and cyber security, GDPR),
ISO certification (e.g., environmental protection, energy management),
internal directives (e.g., Code of Conduct, anti–corruption).
new hires receive initial mandatory training on their first day of employment and then, like existing employees, periodically after 12–36 months, depending on their workplace conditions. Subsequently, employees receive additional mandatory training depending on the qualification requirements for the specific position and activities the employee performs. Examples of such training include working at heights, working with electrical equipment or welding.

As regards optional training, the development system consists of the following programs:

personal – aimed at personal and professional skills,
customized – one–off or long–term; for teams or individuals,
corporate – for selected employee groups, e.g., talents, successors, women, graduates,
leadership – aimed at managers to develop a desirable corporate culture.

As part of the on–boarding adaptation process, new employees participate in a one–day training course called Welcome to CEZ Group. Participants learn essential information about basic processes and become better acquainted with CEZ Group’s strategy and its operation. New employees then follow an adaptation plan defined by their manager, which focuses on the training needed for their job (e.g., job–specific training, soft or hard skills).

New managers participate in the New Manager program, which consists of at least two courses focused on strategic management and the labor legal minimum and training of key management competencies.

In the case of leadership programs, we pay particular attention to managers starting in a new position. We support managers in their new roles and increase awareness of their rights and responsibilities following the career change. In line with our long–term commitment to have 30% of women in management positions, we promote specific programs focused on women’s leadership development.

Other strategically important development activities include:

retraining and reskilling of employees affected by coal exit,
diversity and inclusion topics and work–life balance,
graduate and trainee programs.

When planning employee training and development, we mostly apply the 70:20:10 model. We strive to provide learning content in a form that matches preferred learning styles while following one of the main trends – making it available here and now or anytime and anywhere.

Evaluation of training and development and measurement of effectiveness is part of our standard. Training activities include structured requests for feedback, which is conducted after training events to monitor and evaluate the effectiveness, success and the need for potential improvement. Other tools we use for evaluating the effectiveness of education include managerial feedback (the manager evaluates effectiveness of selected courses completed by subordinates), 360° feedback, development centers, evaluation of individual development plans and diagnostics in the case of long–term development programs, and regular retrospective evaluation workshops with management. Based on feedback, we adjust or supplement the offer of educational activities and prepare the content of follow–up activities.

For several years now, we have had a stable ratio of about one–fifth of employees eligible to retire within ten years. Given the nature of the energy industry, we know that ten years is not a long time, especially for technical positions. Therefore, we need to manage the generational turnover of staff carefully with an emphasis on knowledge management – talent programs, succession planning, communities of practice, etc.

Through the knowledge management system, we ensure that important expertise and experience are retained. By creating opportunities for effective sharing of knowledge, experience and best practices, and by creating knowledge bases (such as handbooks and knowledge portals), we strive to manage generational change smoothly.

In the last four years, we have significantly increased the number of professional communities. A key element underpinning the work of these expert groups is the professional recognition of the staff involved in the work of the communities. The expert communities address our key specialist topics. These activities deepen our professional relationships with suppliers, regulators, other operators, schools and experts. An important part of this is sharing lessons learned and actions taken in areas specific to our work. At the end of 2023, during the Corporate Peer Review mission carried out by WANO (World Association of Nuclear Operators), the company received the "Strength" classification issued for this strategy in the area of knowledge management.

New Learning Management System (LMS)

Under the internal Profík brand, we have successfully implemented the SuccessFactors LMS, which has replaced several outdated systems. This centralization has streamlined our educational processes and enabled:

Uniform training for the wider public, including suppliers,
Consistency and quality assurance.,
New tools and digitalization: using technology for effective and engaging training.

Our next goal is to expand the SuccessFactors system with additional modules, expand our training and development capabilities, and stay ahead of the curve in using technology to develop our employees.

Security Personnel Trained in Human Rights Policies or Procedures

GRI 410-1

Workers providing physical security at CEZ Group premises and facilities (on the basis of contracts concluded under CEZ Group responsibility) receive several mandatory training courses (periodically recurring) in ESG and human rights, which are documented. A code of conduct of companies providing physical security is included in the documentation of physical security at CEZ Group premises. Contracted security services have designated ESG contact points or have established IMS/ESG Compliance Coordinators.

Verification of compliance with ethical conduct by personnel providing physical security for CEZ Group facilities is subject to a compliance audit.

Training of Suppliers and Contractors

The scope of our training programs also includes training of suppliers/subsuppliers and contractors/subcontractors.

The scope of our training programs also includes training of suppliers/sub-suppliers and contractors/subcontractors. The system of such training is described in the management documentation (e.g., rules of conduct), which sets out the basic requirements for the performance of contractors' activities at the sites of our nuclear, conventional and hydroelectric power plants, or at selected non-production sites.

Employees in our supply chain receive training focused on safety issues at our production sites and selected non-production sites (e.g., health and safety, fire protection environmental management system, emergency preparedness, physical protection, nuclear safety). Their training in information and cyber security is equally important.

Employees of contractors and subcontractors must receive training once a year at nuclear power plants and once every two years at conventional power plants and offsite sites.

At nuclear power plants, we train 100% of contractors' and subcontractors' employees who enter the guarded area, and at conventional power plants, we train contractors' and subcontractors' managers and supervisors (at off-site sites, only supervisors), who are then required to train all other employees before they start their activities.

In 2023, there was a major change that made educational content more widely available to suppliers. A new learning management system - LMS Profík - was deployed. Thanks to this system, our suppliers can access educational content from the internet and will see a greater proportion of e-learning courses in the next period, especially in mandatory topics.

We see occupational safety training for employees of suppliers and subcontractors as a key element for improving safety at CEZ Group workplaces.

Requalification

In VISION 2030—Clean Energy of Tomorrow, we pledged to be a responsible employer. The implementation of our ESG strategy requires us to address the implications for employees affected by coal exit. We will provide reassignment, retraining, reskilling or compensation to all employees impacted by coal exit.

Transition, Retraining, Reskilling, Compensation - GRI 404-2

In line with our strategy VISION 2030—Clean Energy of Tomorrow, we will phase out coal gradually. In the past period, we have noticed a number of significant influences on the energy market, which are significantly reflected in the concept of operation of individual locations and the stability of their validity. The changing environment places high demands on the flexibility of the HR tools and measures applied.

As a result of the ongoing military conflict in Ukraine, the activities to meet the objectives of VISION 2030—Clean Energy of Tomorrow have significantly intensified in the area of renewable energy development – the construction of 1.5 GW of RES by 2025 and 6 GW of RES by 2030.

Organizational entities across segments are involved in meeting the objective of preparing and implementing renewable energy sources. Cross-segment integration enhances the professional quality of project preparation from the development phase (opportunities research and project preparation until the building permits are granted) to the operation and maintenance phase.

As of October 1, 2022, the Renewable and Traditional Energy Division established the Renewable Sources business unit. The establishment was necessary due to the unit’s indispensable role, especially in the technical specification of projects, building the RES operational control room and setting up the maintenance of the newly constructed RES.

The organizational unit consists of approximately 100 positions across the territory of the Czech Republic, which will be filled gradually. It will be staffed by, among others, existing employees from coal sites with high potential, able to draw on their previous work experience and committed to learning new skills.

We continue to prepare for the phasing-out and related closure or transformation of our coal-fired production sites, which will have a number of social impacts. We are publicly committed to providing reassignment, retraining, reskilling, or compensation to all employees affected by coal exit.

In 2023, we focused our attention on two locations in particular. The next termination of coal operation concerns the Dvůr Králové nad Labem Heating Plant, namely after the end of the 2023/2024 heating season, or as of June 30,2024. The site will continue to supply heat to its customers thanks to the new sources being completed (2 gas boilers and 1 biomass boiler). The new organizational structure from July 1st, 2024, assumes 22 jobs out of the original 41 positions. The move away from coal has been known in the locality for a long time, and since 2015 measures have been gradually activated to minimize the impact on employees.

Transfers of employees to vacant positions in the Poříčí Power Plant were implemented. We are able to maintain employment until the date of the final change of operators thanks to individual motivational interviews with employees entitled to an old-age pension, coverage of the needs of the operation by former employees on the basis of an agreement to complete a job, training for senior employees to manage the process of change and maintaining motivation associated with meetings with the management of the organizational unit. We pay attention to each employee individually, we have mapped their future professional plans and expectations. In 2023, we provided a professional course program for employees, which was used by 10 employees. As a result of these measures, only 4 employees will leave for the external labor market. They will be subject to the possibility of retraining according to the collective agreement and above-standard severance pay.

The Dětmarovice Power Plant is planned to shut down the operation of coal-fired units after the end of the 2024/2025 heating season. Even in Dětmarovice, employment is maintained at the necessary capacities, mainly thanks to cooperation with the Labour Office, coverage by former employees and elements of financial motivation. We have been cooperating with the Moravskoslezský pakt zaměstnanosti (the employment pact) for a long time in the locality. The interconnected platform of major employers in the Moravian-Silesian Region aims to find the intersection of job vacancies and vacant employees according to the description of professions. Also in Dětmarovice, we have implemented training for senior employees on how to manage the process of change and maintain the necessary motivation among employees. Great emphasis is placed on open and well-timed communication with employees in the locality.

As part of the ASTRA project (transformation of the heating industry in the CEZ Group), the HR stream, we are looking for ways to maximize synergy in ensuring the operation of original and new sources with the aim of maximizing the employment of employees from coal-fired operations.

From January 2025 at the latest, a new law on cyber security should come into effect, transposing the European NIS2 Directive into Czech legislation. Jobs can be created across Czech Group locations. By the end of 2030, 108 jobs at ČEZ Distribuce, a. s. are to undergo a generational change, and from 2024 onwards, the company will implement a smart metering project that will bring more new jobs. The total number of vacancies or newly created jobs within the CEZ Group by 2030 in the Moravian-Silesian Region is also about 200.

Our goal is to ensure that the penetration of employees in endangered jobs and occupied positions is as large as possible. The basic assumption that supports this goal is that employees will acquire new qualifications. A total of 113 employees have signed up for the professional course programme at the Dětmarovice Power Plant. Some of the most in-demand courses include:

Group C driver
One-Year Course in Electrical Engineering
Gas Equipment Inspection Technician
Risk Management Specialist
Information and cyber security specialist
Electrical Equipment Inspection Technician

Extended qualification of employees from coal localities will strengthen their competitiveness on the internal and external labor market.

Subsequently, we will also introduce other HR tools to maximize the employment of employees in the internal labor market. We expect to actively work with interested candidates.

Depending on the nature of the organizational change, we discuss and inform the trade union representatives of the details of the changes and the time required to implement them. When deciding on contract termination, we consider the employee’s performance, qualifications, and retraining opportunities. Finally, we also offer outplacement services (e.g., workshops, individual follow-up consultations, Helpline) to help affected employees find new jobs.

Upon termination of employment for organizational reasons, we proceed fully in accordance with the collective agreement. We provide severance pay of up to ten times the average monthly earnings depending on the length of employment. In this respect, we go well beyond the severance pay specified in the Labor Code. In the case of termination agreements, we increase the severance pay according to the number of months remaining until the employee becomes eligible for a retirement pension. When both severance payments are combined, we compensate up to 19 times the employee’s average monthly earnings.

All affected employees may apply for a retraining course in accordance with the applicable collective agreement. The objective is to encourage new career paths for employees. This way, employees broaden or deepen their professional qualifications and skills needed to find a new job in the labor market, with the costs of up to CZK 40,000 covered by the employer. Employees must apply for retraining before termination of employment. If the retraining occurs during employment, the employee may take time off work with wage compensation equal to average earnings.

Cooperation with schools

We systematically support technical education to address long-term recruitment requirements and generational change. We work closely with schools and universities, partner with them and organize various events (e.g., student programmes, internships) for pupils, students and teachers. In order to support the strategic recruitment of specialized staff for nuclear operations, close cooperation was established with the Secondary Vocational School in Hněvkovice, where the apprenticeship course of welding and piping for nuclear power was opened. For students at technical universities we organize a two-week internship at the Summer University, during which they get to know in detail the operation of a nuclear power plant. We also encourage women to participate, who will make up 15% of the participants in 2023.

Early recruitment and training of new colleagues are in some cases critical to successfully managing generational change. For example, the training of nuclear power plant operators takes more than two years after the employee is hired. In recent years, the most valuable source of new operators has been recent university graduates, who account for over 80% of all new operators.

Health and Safety

GRI 3-3, 403-1, 403-2, 403-8; SASB IF-EU-320a.1

All CEZ Group companies have implemented an occupational health and safety management system based on the requirements of national legislation in this area. Selected companies, based on the number of employees, their classification according to the category of work (the impact of work and the working environment on the health of employees) and the severity of the evaluated occupational health and safety risks, have implemented and certified a management system according to ISO 45001, or the national Safe Enterprise program (the certificate is issued by the State Labour Inspection Office on the basis of an audit) or are under the comprehensive supervision of the State Mining Administration. The Dukovany Nuclear Power Plant is a holder of the Safe Enterprise certificate. The certificate was not issued to the Temelín Nuclear Power Plant despite meeting the requirements of the Regional Labour Inspectorate review of the OHS management system in 2023, due to the legitimate reason of the ongoing investigation of the fatal accident at work of two employees dated May 26th, 2023.

The OHS management system is implemented in CEZ Group companies in accordance with:

national legislation including regulations for mining activities
the ISO 45001 standard or
the Safe Enterprise national program (follows the ISO 45001 standard, the principles set out in the National Manual for the Implementation of OHS Management System and the ILO OSH-2001 manual, and also meets the requirements of the EU Strategic Framework on OHS)

The Safe Enterprise program was announced by the State Labour Inspection Office, which also carries out screening and issues certificates for companies that have demonstrated compliance with the requirements of this program as part of the audit.

Every year, safety is one of CEZ Group's strategic priorities. The main principles and priorities in the area of security are:

To continuously implement the Safety and Environmental Protection Policy.
To meet the requirements of increasing the safety of nuclear power plant operation.
To increase the safety of the non-nuclear area of CEZ Group's activities in the long term.
Implement measures resulting from the selected Safety Theme of the Year for individual divisions of ČEZ, a. s., and CEZ Group companies.

Health and safety indicator is part of our annual performance indicators. The frequency of employee accidents at work (including fatalities) is included in our management KPIs.

The general objectives and principles announced by the Board of Directors of ČEZ, a. s., as the Safety and Environmental Protection Policy, which the company uses in its management, are as follows:

We put safety, protection of life and health above other interests.
We consider safety and environmental protection to be an integral part of our management system.
Safety and environmental protection are an integral part of the mindset, behavior and work habits of all employees and suppliers.
In our activities, we place great emphasis on environmental protection, including pollution prevention.
Compliance with mandatory obligations is a natural part of our activities.
We constantly improve our environmental management and occupational health and safety management systems.
We require the same approach to safety and environmental protection from our suppliers.

Safety Topic of the Year is annually declared in accordance with the Group’s rules and objectives. Individual CEZ Group companies announce their Safety Topic of the Year which is linked to their key performance indicators and priorities and is based on their safety risk assessment.

Every year, we prepare a report on the state of safety, which is presented to the Board of Directors. Based on the report, we implement measures and projects to improve the safety at CEZ Group.

We continuously review our safety weaknesses and strengths, revise emergency plans, and train emergency teams, employees, and other concerned parties. We ensure compliance with relevant legislation: designated departments carry out annual internal audits and risk analyses of the OHS system and regularly communicate safety performance indicators to stakeholders. Based on the audit findings, changes in legislation, and periodic risk assessments, we take preventive measures and update safety guidelines and procedures. We also improve working standards.

Coverage of employees covered by the OSH management system:

We report the data on behalf of employees and on the basis of information provided by CEZ Group companies.

No employees were excluded in the reporting.

We keep a register of OHS risks and continuously evaluate all potential dangers. To identify potential hazards, we use all possible sources of information, including consultations with employees. In the case of work accidents, we perform an ad-hoc OHS risk analysis and put the findings into practice. Risks are identified by professionally competent persons with legally required qualifications.

We identify and monitor near misses. In 2023, an intensive information campaign and the development of new functions of the information system for easier recording of near misses were launched. The aim of the campaign was to remind employees to think about dangerous situations, know how to prevent them, and share this information with others through their reporting to their manager or through established applications.

Occupational Health and Safety

GRI 403-3, 403-4, 403-5, 403-6

In terms of OHS training, new employees complete a mandatory induction training on their first day at work, existing employees every 2 years, and managers every 3 years. During the training, employees learn about the OHS management system, the duties of employees and the employer, other conditions for ensuring OHS and practical examples of accidents resulting in work-related injuries. All employees are trained in first aid.

In the case of suppliers’ workers, our OHS training follows the training that must be legally provided by their employer. In nuclear power plants, suppliers’ workers are trained in OHS prior to being allowed to enter the nuclear power plant or being appointed to the role of work supervisor/preparer. To extend entry to the facility or appointment to the role of work supervisor, they are periodically trained once a year. During the training, they learn about the specifics of working in nuclear power plants, expected behavior, OHS workplace conditions, and the work management system. In conventional and hydroelectric power plants, suppliers’ workers are trained for the role of responsible persons and work managers before starting work and every two years thereafter.

Every employee receives occupational medical examination, the extent and frequency of which depends on the nature of work and legal requirements. We use a network of contracted providers of occupational health services throughout Czechia. The quality of services is set out in the contract. We monitor and evaluate the quality of services based on feedback from employees. For key providers, we have been successful in improving the quality of services. The occupational medical examinations result in a doctor’s report containing a decision on the employee's fitness or unfitness for work, which the employer is legally compelled to determine. We do not collect confidential information about the employee’s health condition.

Employees working in shifts are enrolled in the Premium Health Care Program. As part of the program, they undergo above-standard medical examinations focused on the prevention of diseases of civilization, and at the same time they receive a health care allowance in the form of an additional contribution to the Cafeteria benefit account intended for their health care (spas, wellness, vacations, sports activities, or can be used for the purchase of medicine, etc.). The employer bears the full cost of this program. Employees receive the results of the above-standard medical examinations exclusively for their own use. In the case of special medical examinations within this program, only the employee receives the results of the examinations, and exclusively for his or her own needs. As part of the evaluation of the effectiveness of the program, we receive an annual report from the providers in the form of statistics, without the personal data of the employees. The security of personal data when handing over to a doctor takes place in a special secure zone on the side of the medical facility where the data is entered. Sensitive data after a medical examination is not communicated to us as an employer at all.

Employees may need vaccinations due to increased risks arising from their work activities, e.g., against tick-borne encephalitis, rabies, and hepatitis. All employees are also offered vaccination against seasonal influenza. All vaccinations are voluntary and free of charge for employees. The company covers the cost and, where possible, provides on-site vaccinations. Employees can receive medical examinations and vaccinations during their working hours. To schedule a medical examination quickly, employees can use an online form on the intranet.

Health Days are very popular events among the employees. They take place both face-to-face and online and are organized in cooperation with the health insurance company - Oborová zdravotní pojišťovna as part of prevention programs. During Health Days, we offer employees birthmark checks, physiotherapy consultations, massages by blind masseurs, eyesight tests, body composition measurements, and other health-related services. We also provide webinars on healthy nutrition and lifestyle.

For CEZ Group employees and their family members, we offer unlimited free access to health care via www.ulekare.cz, which provides an online medical counseling service and doctor appointments. This service is accessible via the website or in a mobile app.

All employees can take two days of paid sick leave per year, 65% of the salary is paid.

Trade unions are involved in the discussion of OHS topics, relevant internal documents of CEZ Group companies relating to OHS, and they participate in debates on OHS issues and workplace incident investigations. Trade unions also participate in regular OHS inspections at all CEZ Group workplaces. The inspections are performed by inspection committees composed of employees of CEZ Group companies at their respective workplaces or facilities. The inspection results are presented to the facility management and discussed with an appointed trade union representative.

Work-related Injuries and Ill Health

GRI 403-9, 403-10; SASB IF-EU-320a.1

We monitor relevant indicators and rates of work-related injuries. Based on the results, we update the methodology for recording workplace accidents of employees and workers who are not employees but whose work and/or workplace is controlled by the organization, i.e., mainly suppliers (hereinafter referred to as workers who are not employees) to improve OHS.

In case of work-related injuries, the OHS Department conducts an on-site investigation. Upon completion of the investigation, corrective actions are taken, and their effectiveness is subsequently monitored.

To enable better comparisons, we introduced the reporting of the Lost Time Injury Frequency Rate (LTIFR). We issued an internal methodology for data collection and reporting of this parameter including software support and held workshops for data collection and reporting staff.

We monitor workplaces and activities with a high incidence or high risk of specific injuries and illnesses. Primarily, we focus on positions with risk factors related to vibration, noise, radiation, and dust.

In 2023, we recorded the following statistics for work-related injuries:

In 2023, CEZ Group experienced three fatal injuries to employees and one fatal injury to a supplier. These included work on the construction of a photovoltaic power plant, work on the construction of a hot water pipeline and work on the reconstruction of substation equipment. All accidents were duly investigated and clarified by the company concerned and appropriate measures were taken. The effectiveness of the measures taken will then be verified. The increase in the number of fatal accidents at work compared to previous years resonates very strongly in CEZ Group, and the above-mentioned measures from the affected companies are communicated to all relevant CEZ Group companies as a prevention against the recurrence of similar injuries in the future.

Nuclear Safety and Emergency Preparedness

GRI G4-DMA; SASB IF-EU-540a.1, IF-EU-540a.2

We operate two nuclear power plants, Dukovany and Temelín, which are the basis of our generation portfolio. Since nuclear safety is one of the most strictly regulated and internationally monitored areas, we:

keep track of the environmental and human health impacts of nuclear operations
handle radioactive waste safely using the latest technologies in its treatment and processing
improve our safety systems and implement best practices and recommendations of nuclear authorities

Both nuclear power plants meet international requirements for safe operation and are subject to periodic safety reviews and regular international reviews by the nuclear authorities.

Both nuclear power plants are holders of the Safe Enterprise certificate, issued by the State Labor Inspection Office following an audit. In the case of the Temelín Nuclear Power Plant, the verification of compliance with the implemented OHS management system Safe Enterprise ČEZ, a. s. – Temelín Nuclear Power Plant was interrupted due to an extraordinary event on 26 May 2023, which resulted in fatal accidents at work for two employees of ČEZ, a. s.

In terms of emergency preparedness, nuclear power plants follow the Internal Emergency Plan for Nuclear Power Plants approved by the State Office for Nuclear Safety (SONS). Additionally, both nuclear power plants adhere to the External Emergency Plan for the Emergency Planning Zone, drafted by the regional Fire Rescue Service (FRS) in cooperation with the power plants and other organizations.

We test emergency preparedness annually using unannounced exercises, and we apply various exercise scenarios such as technology failure, radiation accident, and environmental accident. We engage all persons present on the premises during the exercises, including suppliers and their workers. We cooperate with public authorities (SONS, Czech Fire Rescue Service, regional and municipal authorities) and international organizations during the exercises.

Regarding fire protection, each plant has its own Corporate Fire Brigade unit (CFB), which is part of the Czech Integrated Rescue System. If necessary, CFB units may operate off-site under the regional emergency plan. The most important focus of CFBs is prevention.

As part of nuclear safety, we monitor the impact of nuclear operations on the environment and human health. Long-term environmental monitoring programs for nuclear power plants have confirmed that we operate without negative environmental impacts.

Crisis communication

In crisis communications, the management proceeds according to applicable legislation, crisis commutation plans, and emergency plans. In CEZ Group, the main crisis communication roles are assigned to the Communication and Marketing Department and the Fire Protection and Crisis Preparedness Department.

The Communication and Marketing Department ensures:

contact with the media
internal communication
communication with local and public authorities and external bodies of the Integrated Rescue System (Czech Fire Rescue Service, Czech Police, Medical Rescue Services)

The Head of the Communication and Marketing Department is a member of the CEZ Crisis Management Board (CMB) and regularly reports to CMB.

In the case of an incident at a nuclear facility, the nuclear power plant emergency committee (NPPEC) is activated, including its designated spokesperson, who handles communication between CEZ Group and external crisis management units. Before the activation of NPPEC, the shift engineer is responsible for early warning of the population in emergency planning zones and informing local authorities and state administration bodies. Upon its activation, NPPEC takes over and carries out these activities.

Communication of nuclear emergencies follows:

Crisis Management Directive
Crisis Communication Guidelines
Emergency Response Instructions

All means of nuclear crisis communication (e.g., guidelines, instructions, plans, databases) are subject to regular quarterly reviews, and technologies used are tested continuously, at least once a week.

We distribute an emergency manual to residents of emergency planning zones of nuclear power plants. We want to ensure that residents have basic information in case of emergencies.

The Distribution Grid Emergency Handbook provides more details related to our crisis management. The Handbook serves as a guide for Emergency Response Teams and municipalities. The Handbook also includes the necessary crisis hotlines, information on our emergency procedures, and tips on how to prepare for and what to do in case of an outage. The public version of the Handbook is available on our website. Before planned outages and during distribution network emergencies, we inform our stakeholders through various communication channels (e.g., spokespersons, websites, hotlines, the online portal bezstavy.cz, SMS/email notification service). We see digitalization as an important aspect of crisis communication and informing the public about planned outages.

Conventional Power Plants Safety

All our power and heating plants from the Renewable and Conventional Energy Division (i.e., coal, gas, hydro) have an emergency plan required by law. In the emergency plan, the plant’s preparedness for accidents and emergencies is described. The emergency plan is followed by an Emergency Preparedness Plan (EPP), which sets out the procedures for communicating and dealing with an emergency in a specific location.

Pursuant to the Fire Protection Act, the Renewable and Conventional Energy Division has established a corporate fire brigade unit (CFB), which operates at stations in designated plants. The CFB unit is a part of the Integrated Rescue System (IRS) of Czechia. The CFB unit’s organization, competence, and ability to act are organized, methodically managed, and controlled by the Czech Fire Rescue Service (FRS).

The CFB unit training takes place in accordance with legal requirements. The professional competence of all employees assigned to the CFB unit is assessed every five years by the Commission of the Ministry of Internal Affairs of the FRS.

All power and heating plants conduct at least one emergency exercise each year to review the safety procedures in the EPP and the activities of the Emergency Response Team (ERT) and power and heating plant personnel. Further, emergency exercises test the cooperation with external entities (e.g., the FRS, Czech Police, Medical Rescue Services, and relevant state and municipal authorities). The situations simulated in the emergency exercises include fire, explosions, presence of toxic or flammable gases, technological malfunctions, the rescue of people, leakage of hazardous substances, and breach of physical security.

Every two years, conventional power and heating plant employees take an e-learning course on emergency preparedness, while ERT members receive regular in-class training every year.