Environmental
Reducing the environmental impact of the energy sector and contributing to global climate goals are long-term strategic goals of CEZ Group. CEZ Group has spent tens of billions of crowns on desulphurization, denitrification, CO2 emission reduction and other environmental measures, and is consistently implementing steps in advance to meet all emission and environmental requirements set by legislation and regulatory authorities. The main environmental priorities include decarbonization, renewable energy development, and increasing energy efficiency.
Decarbonization
We will reduce CO2 emissions in line with the Paris Agreement “well below 2 degrees” by 2030
We will reduce the emission intensity from 0.38 tCO2e/MWh in 2019 to 0.26 tCO2e/MWh in 2025 and to 0.16 tCO2e/MWh in 2030
We will reduce the share of coal-fired electricity generation from 39% in 2019 to 25% by 2025 and to 12.5% by 2030
Emissions
We will reduce NOx from 23 kt in 2019 to 13 kt in 2025 and 7 kt in 2030
We will reduce SO2 from 21 kt in 2019 to 6.5 kt in 2025 and 3 kt in 2030
Renewables
We will build 1.5 GW of RES by 2025 and 6 GW of RES by 2030
We respect the sustainability agenda adopted by the Czech government in the strategic Framework Czech Republic 2030 and we apply two key principles of the United Nations 2030 Agenda: quality of life and sustainability. The Czech strategic framework is based on seventeen global sustainable development goals (SDGs) adapted by the United nations member States in 2015. We link the selected global topics to CEZ Group’s sustainable development strategy. In 2015, countries adopted the 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals. In 2016, the Paris Agreement on climate change entered into force, addressing the need to limit the rise of global temperatures.
The Sustainable Development Goals are a call for action by all countries – poor, rich and middle-income – to promote prosperity while protecting the planet. They recognize that ending poverty must go hand-in-hand with strategies that build economic growth and address a range of social needs including education, health, social protection, and job opportunities, while tackling climate change and environmental protection.
CEZ Group serves customers responsibly and provides comprehensive energy advice and services that can be customized to customers’ needs. We offer energy solutions to both individuals and institutions: residential households, industrial companies, small and medium-sized businesses, municipalities, public and private organizations, hospitals, schools, sports arenas, and companies managing buildings and premises of all types. In times of energy crisis, our priority is to deliver safe, stable, and affordable energy to our customers. Our energy solutions reduce energy consumption and improve our customers’ quality of life by using advanced technology for electricity and heat generation, lighting comfort, and mobility.
As an energy company, we play a key role in climate protection. In 2021, we launched an accelerated strategy VISION 2030—Clean Energy of Tomorrow. The top priorities of the strategy include the transformation of our generation portfolio to a low-emission one and the target of carbon neutrality by 2040. The current emphasis on environmental protection is also accelerating the need for energy savings. Smart solutions, advanced technologies, and digital transformation reduce energy consumption. Supporting innovations and digitalization corresponds to our strategy VISION 2030: it is key to saving energy and using natural resources more efficiently.
Clean water and Sanitation
Water is the second most important raw material after fuel for CEZ Group’s production. It has an irreplaceable role in cooling during power generation. All CEZ Group generation facilities comply with water protection provisions and conditions outlined in operation permits. In 2022, CEZ Group joined the UN CEO Water Mandate and committed to responsible water stewardship and regular reporting on water management.
Industry, Innovation and Infrastructure
In VISION 2030—Clean Energy of Tomorrow, CEZ Group commits to large-scale digitalization of distribution networks. The company wants to deliver the best customer experience in the market and bring all key customer processes online by 2025. The digitalization program and its solutions will benefit renewables, energy storage, e-mobility, and new related services.
Sustainable Cities and Communities
ČEZ ESCO’s Smart City concept helps cities set up efficient energy management. Designed for the public sector, the concept revolves around modern technologies and renewable resources. Using high-tech solutions, the Smart City improves the environment and saves public budgets. E-mobility helps with emissions reduction and presents opportunities for companies to grow. We focus on the entire value chain, including synergies between different green products (photovoltaics, energy storage, etc.).
Responsible Consumption and Production
CEZ Group is aware of the growing importance of waste management and protection of finite natural resources throughout all its operations. Waste is seen as a new resource, and principles of circular economy are applied to all stages of waste management. We have introduced the principles of circular economy into our corporate culture, strategy, and processes of our business activities. The Board of Directors is responsible for waste management and circular economy through the Environmental Protection and Safety Policy. The waste management hierarchy is followed in all our activities.
Life Below Water
Although Czechia is a landlocked country without access to oceans, we feel responsible for the world’s oceans, and we do our part to protect life below water in our operations. All CEZ Group generation facilities comply with water protection provisions and conditions outlined in operation permits. We prevent water pollution by responsible surface water and river management. Plastic pollution is a severe threat to oceans and life in them. In CEZ Group, we handle waste based on principles of circular economy preventing waste pollution.
Life on Land
CEZ Group’s long-term strategic goals include reducing environmental impact, achieving global climate goals, protecting biodiversity, and meeting all emission and environmental requirements set by legislation and regulatory authorities. CEZ Group’s biodiversity strategy includes protection and restoration of biodiversity, reduction of lignite mining, and reduction of pollutant and GHG emissions. The strategy also involves the restoration of areas affected by mining, where the biodiversity of natural habitats is promoted in the reclamation process.
We are aware of our role in society and the responsibility this role inevitably entails. Our management emphasizes ethical principles in all employee and supply chain conduct. Through sound business ethics and relations, we strive to pave the way for trust with both shareholders and stakeholders.
CEZ Group reports our EU taxonomy key performance indicators in line with the Taxonomy Regulation and associated delegated acts. CEZ Group discloses full taxonomy KPIs for year 2022. For the 2022 fiscal year, we report on two environmental objectives: climate change mitigation (CCM) and climate change adaptation (CCA). As our activities in the energy sector and energy services are primarily oriented towards substantial contribution to mitigation, we do not disclose standalone CCA disclosure. We do not perform material activity with contribution to adaptation and the list of CCA eligible activities would mirror CCM eligibility disclosure without any additional value.
Technical screening criteria consist of Substantial Contribution Criteria for climate change mitigation objective and Do No Significant Harm criteria for other five environmental objectives. The alignment is assessed on the level of a single economic activity or projects of a given company. The assessment of climate risks and social safeguards has a group-level importance and is managed on CEZ Group level.
Our methodology and detailed disclosure are available in chapter 6 of Sustainability Report 2022.