Climate Change
The energy industry is currently undergoing the greatest changes in the last few decades. The emphasis on the environment, regulatory changes, technological progress, and customer preferences are guiding the energy sector toward decentralized and environmentally friendly sources and processes. In 2021, the Board of Directors of ČEZ, a. s., approved a commitment to achieve climate neutrality by incorporating the sustainability strategy VISION 2030 into the corporate strategy of CEZ Group.
Greenhouse gas emissions are assessed as a material impact requiring a solution within the business model under the double materiality assessment. The interactions of VISION 2030, the business model, and material impacts, risks, and opportunities are described in the chapter Material Impacts, Risks, and Opportunities of the CEZ Group 2025 Annual Financial Report III. Sustainability Report.
The current business concept of CEZ Group and VISION 2030, including the transition plan, respect the decarbonization trend. The fundamental strategic pillar of the transition plan is the transformation of the generation portfolio into a low-emission one and achieving climate neutrality by 2040. The greenhouse gas emission reduction targets for CEZ Group are presented in the form of greenhouse gas emission intensity, including Scope 1 and Scope 2 GHG emissions, in tonnes of carbon dioxide equivalent per megawatt hour of electricity and heat generated (the emission intensity), expressed in t CO2e/MWh. The calculation methodology and the scope of emissions included are described in the chapter Greenhouse Gas Emissions of the Sustainability Report.
The most powerful decarbonization tools in Scope 1 (decarbonization levers) until 2030 in CEZ Group are the shift away from coal combustion (planned decrease in the emission intensity by approx. 65%) and the installation of new emission-free facilities, or transitional facilities using natural gas (planned decrease in the emission intensity by approx. 35%). Since 2019, CEZ Group has shut down coal-fired facilities, including divestitures, with a capacity of 3,614 MW (220 MW Ledvice II, 440 MW Prunéřov I, 800 MW Dětmarovice, 79 MW Vítkovice, 1,000 MW Počerady, 500 MW Mělník III, 330 MW Skawina, 238 MW Chorzów, and 7 MW Dvůr Králové nad Labem Heating Plant). Coal-burning heating plants will undergo significant mitigation in operations by 2030. The use of coal in power plants will also be phased out by 2033, although this will likely happen earlier given the development of market conditions. Other decarbonization tools include waste-to-energy technology, technological increase in the efficiency of power plants, and replacement of the vehicle fleet with combustion engines with electric cars. After 2030, other planned actions include a transition from the use of natural gas to emission-free gases (hydrogen, biomethane), and added capacity of nuclear facilities. All of the above actions take into account developments in technology, markets, legislation, social issues, and environmental protection, including the impacts of climate change in alternative scenarios for both existing and projected sites.
The Scope 2 contribution is non-material, therefore no commitments or actions are defined for it. Within Scope 3 and Category 11 – Use of products sold, the most important measure is the reduction of coal mining.
CEZ Group fully supports the commitment of the 2015 UN Paris Agreement on Climate Change to limit global warming to “well below 2 °C” above pre-industrial levels and to maintain the increase to no more than 1.5 °C. This strategic target is supported by a set of short-term and long-term decarbonization targets. CEZ Group is committed to reducing its emission intensity, expressed in tonnes of CO2e/MWh, by more than 50% by 2030 compared to the reference year 2019 and achieve climate neutrality by 2040. Compared to the reference year 2019, when 0.38 CO2e/MWh was reported, this means a reduction to below 0,16 t CO2e/MWh in 2030. Chapters Strategy, Business Model, and Value Chain and the chapter Material Impacts, Risks, and Opportunities of the Sustainability Report describe where these VISION 2030 targets are located in the value chain and how they relate to the impacts identified in the DMA.
The targets were set in line with the scenarios according to the 2017 International Energy Agency (IEA) report; for targets up to and including 2030, this is the Beyond 2 degrees scenario (B2DS).
Validation pursuant to the Science Based Targets initiative (SBTi)
In September 2023, validation of the short-term target for 2033 and the long-term target for 2040 was completed pursuant to the SBTi Sectoral Decarbonization Approach (SDA) methodology and the IEA‘s Net Zero by 2050 (NZE) scenario, which are consistent with the 1.5 °C scenario under the Paris Agreement. After the divestment of the Polish assets, the SBTi targets have become close to the targets defined in VISION 2030, which includes currently operating facilities, while the SBTi methodology requires that the starting-year and final-year emissions be made on an identical group of facilities. When evaluating the fulfillment of SBTi targets, emissions in the starting year are reduced by the assets sold, but the emission intensity calculated for the final year does not change.
The short-term targets of CEZ Group include a commitment to reduce the emission intensity by 83% (in CO2e/MWh in the sum of Scope 1 and 2) by 2033 compared to 2019. CEZ Group is also committed to reducing the absolute value of Scope 3 greenhouse gas emissions from the use of sold products (Category 11) by 58.8% in the same period.
The long-term targets of CEZ Group include a commitment to reduce emission intensity by 97.3% by 2040 compared to 2019. CEZ Group is also committed to reducing absolute Scope 3 greenhouse gas emissions from the use of sold products (Category 11) by 90% in the same period.
To meet the set strategic targets to reduce the impacts and risks related to climate change and adapt the strategy and operation of generating facilities to the actual and expected scope of climate changes, action plans and actions are adopted and monitored on a quarterly basis.
| Key actions | Location/company | Implementation |
|---|---|---|
| Nuclear energy Activities related to the extension of fuel cycles and the extension of operating life were completed at both NPPs. We managed to reduce shutdowns thanks to digitalization and maintenance optimization. The safety and control systems are being renovated and preparations are underway to replace the generators at the Temelin Nuclear Power Plant. |
Temelín, Dukovany | 2025 |
| Small modular reactors As part of the SMR projects, the processing of EIA documentation and documentation for the siting permit under the Atomic Energy Act was commenced. |
Temelín, Tušimice | 2025 |
| Decarbonization of heating industry in Silesia The decarbonization process is underway in Dětmarovice with minor adjustments to the nodal milestones in the planned schedule (gas boilers, biomass boiler, and gas cogeneration already installed). Technology installation is underway. |
Dětmarovice | In progress |
| Decarbonization of resources in North Bohemia Gas boilers were put into operation in Tušimice and Prunéřov, which allow the complete shutdown of coal-fired plants outside the heating season. Further stages of the project and interconnection of facilities is to continue (selection of the supplier for the Prunéřov-Kadaň hot water pipeline). |
Tušimice, Prunéřov | In progress |
| Mělník location The largest heat generating facility in the Czech Republic is undergoing transformation and modernization. Representatives of Energotrans and the contractor signed a contract for the construction of a CCGT plant, and construction of a waste-to-energy facility has begun. |
Mělník | In progress |
| Heating industry – other locations Projects and implementations are underway to decarbonize other facilities using a combination of modern technologies (biomass boiler, gas boiler, and cogeneration units). Launch of the Dukovany-Brno hot water pipeline project. |
Trmice, Ledvice, Hodonín, and other locations | In progress |
| Coal phase-out Termination of electricity generation from coal at the Dětmarovice power plant. Continuation of the transformation of other locations. |
ČEZ, a. s. | 2025 |
| Preparation and implementation of modernization of hydroelectric power plants Modernization projects continue. A project of a new pumped-storage power plant in the Orlík-Kamýk hydroelectric power plant system. Over CZK 800 million was invested in the overall renovation of the Dlouhé Stráně power plant. |
Multiple locations | In progress |
| Photovoltaic power plants (PVPP) 11 PVPP projects with an installed capacity of 74 MWp have been put into operation. Another 13 PVPP projects (307 MWp) are currently in the implementation phase. There are currently 4 PVPP projects (143 MWp) in the process of preparing the commercial plan. |
Multiple locations in the Czech Republic | In progress |
| Decarbonization of the downstream value chain A total of 15,376 PVPP plants with an installed capacity of 427 MW were connected to the distribution grid for customers. Over 87% of installations are equipped with battery storage, with a capacity of 225 MWh. |
Multiple locations in the Czech Republic | 2025 |
| Preparation of projects for the construction of CCGT plants A joint tender procedure for the so-called GT sets (the gas part of the facilities) is being prepared. The economics of these facilities depend on potential capacity support. |
Multiple locations in the Czech Republic | In progress |
| Setting up conditions for the transition to hydrogen Establishing contractual terms for “H2-ready” – readiness for hydrogen combustion by 2035 for all newly installed gas equipment. Preparations are underway to adapt the distribution grid for hydrogen distribution (a pilot project for adding hydrogen to a mixture with natural gas). |
CEZ Group | In progress |
| Increasing energy storage performance With the support of the SEF subsidy program, investments are being prepared for 18 new projects with a total installed capacity of 1,828 MWh. |
Multiple locations in the Czech Republic | 2025 |
| CEZ Group fleet The number of electric cars has approached the target of 600 vehicles. Employees of CEZ Group companies have approximately 500 charging stations and wallboxes available throughout the Czech Republic. |
CEZ Group | In progress |
The social impacts of the transformation are mitigated by a number of actions (reassignment to other positions, retraining, or compensation for all employees affected by the shift away from coal). Specific implemented and planned actions are listed in the CEZ Group 2025 Annual Financial Report, III. Sustainability Report, chapter Own Workforceor or in the part Own Workforce.
CEZ Group reports its GHG emissions using the methodology of Greenhouse Gas Protocol: Corporate Accounting and Reporting Standard and 2006 IPCC Guidelines for National Greenhouse Gas Inventories (GHG Guidelines). Emissions are divided into groups:
- Scope 1 comprises direct emissions associated with the activities of CEZ Group,
- Scope 2 includes indirect emissions associated with the purchase of electricity, heat, process steam, or cooling for own consumption,
- Scope 3 includes indirect emissions not generated by CEZ Group, but by its contractual partners, i.e., emissions related to the supply chain, delivery of goods and services, or the purchase of products, services, or waste by contractual partners.
Scope 1 and Scope 2 emissions are reported in full, Scope 3 emissions are reported for material categories. In 2021, the sustainability strategy targets were set and the year 2019 was set as base year to maintain trend tracking. The methodology for calculating greenhouse gas emissions for 2025 is identical to the methodology used in 2024.
CEZ Group is a major energy corporation with a highly variable portfolio of greenhouse gas emission sources in companies operating in a number of countries. CEZ Group only exercises operational management over its fully consolidated subsidiaries. Their greenhouse gas emissions are included in the calculation of direct and indirect emissions.
In CEZ Group, greenhouse gas emissions are measured (CO2, CH4 a N2O emissions measurement) or determined by balance calculation. Greenhouse gases other than CO2 gas are converted to an equivalent amount of CO2 using GWP (global warming potential) coefficients. In CEZ Group, greenhouse gas emissions are monitored and tracked in accordance with the Kyoto Protocol (CO2, CH4, N2O, HFC, PFC, SF6). NF3 (also included in the Kyoto Protocol) is not used within CEZ Group.
Direct greenhouse gas emissions (Scope 1) come from the combustion of fossil fuels for electricity and heat generation and backup energy sources (diesel generators); (CO2, CH4 a N2O), from fuels for work machines and vehicles owned or operated by CEZ Group (CO2, CH4 a N2O), from fugitive emissions from coal mining (CH4), from landfills (CH4), from transport of natural gas (CH4 and CO2), from biomass combustion (CH4 and N2O), and small amounts of HFC, PFC, CH4 and SF6 emissions as leaks from refrigeration and air conditioning equipment and from electrical switching devices. Scope 1 greenhouse gas emissions are currently the most significant for the energy sector. However, their importance will decrease in the future with the transition to low-emission and emission-free energy sources.
| 2019 | 2024 | 2025 | Source of emission factors | |
|---|---|---|---|---|
| Fossil fuel emissions from facilities (CO2, CH4 a N2O) | 26,626,546 | 15,334,798 | 13 844,719 | Laboratory analysis, NIR CZ 1), IPCC 2) |
| Fugitive emissions of CH4 | 17,684 | 78,232 | 198,323 | IPCC 2) |
| Leaks of fluorinated greenhouse gases – (HFC, PFC, SF6, and CH4) outside generating facilities | 3,136 | 6,168 | 4,885 | IPCC 2) |
| Emissions from transport (CO2, CH4 a N2O) | 61,640 | 57,109 | 62,814 | ČSN EN 16258:2012 |
| Total Scope 1 emissions | 26,709,010 | 15,476,307 | 14,110,741 | |
| Share of GHG from regulated emissions trading systems (%) | 99 | 96 | 95 | |
| Emissions from biomass facilities (biogenic CO2) | 1,343,775 | 949,529 | 1,019,460 | Laboratory analysis, NIR CZ 1) |
1) National Greenhouse Gas Inventory Report of the Czech Republic.
2) IPCC Guidelines for National Greenhouse Gas Inventories.
Within the Scope 2 indirect emissions category, indirect emissions from purchased and consumed energy are reported in accordance with location-based and market-based methods in countries where energy consumption cannot be covered by own production.
| 2019 | 2024 | 2025 | Source of emission factors | |
|---|---|---|---|---|
| Total Scope 2 emissions – location-based | 356,198 | 15 | 107 | AIB 1), Eurostat 2), IPCC 3), EA 4) |
| Total Scope 2 emissions – merket-based | undetermined | 28 | 104 | AIB 1), Eurostat 2), IPCC 3), EA 4) |
1) AIB: https://www.aib-net.org/facts/european-residual-mix
2) Eurostat: https://ec.europa.eu/eurostat/databrowser/view/nrg_bal_peh__custom_20378922/default/table
3) IPCC: https://www.ipcc-nggip.iges.or.jp/public/2006gl/pdf/2_Volume2/V2_2_Ch2_Stationary_Combustion.pdf
4) EA: https://www.gov.il/BlobFolder/generalpage/dochmeshek/he/Files_doch_meshek_hashmal_2023_24_en_Pua_Report.pdf
Other indirect emissions (Scope 3) comprise indirect greenhouse gas emissions in the supply-demand chain (upstream and downstream emissions) that arise as a result of CEZ Group‘s activities but are not included in Scope 1 and Scope 2. The GHG Protocol divides these indirect greenhouse gas emissions into 15 categories.
Eight Scope 3 categories are not included in this Report due to their negligible values (their share of total Scope 3 emissions is below 1%) or because CEZ Group does not operate the given activity. These are the following categories: upstream transportation and distribution, waste generated in operations, business travel, employee commuting, downstream leased assets, upstream leased assets, end-of-life treatment of sold products, and franchises.
This year, a repeated review of all 15 categories took place, of which those that contribute at least one percent to total Scope 3 emissions were identified as material. In the long term, emissions from purchased goods and services are reported regardless of this limit. The materiality of individual Scope 3 categories is reviewed every three years, or in the event of a material change in the consolidated group or value chain of CEZ Group that could affect the percentage representation of individual categories.
| 2019 | 2024 | 2025 | Source of emission factors | |
|---|---|---|---|---|
| Category 1 – Purchased goods and services 4) | 41,112 | 76,843 | 58,982 | GEMIS 1), Winnipeg 2), Incopa 3), EPA 4), Society of chemistry 5) |
| Category 2 – Capital goods | – | 267,802 | 269,150 | EPA 6) |
| Category 3 – Fuel- and energy-related activities | 2,633,947 | 4,279,664 | 4,111,133 | GEMIS 1), EC 7), AIB 8), North sea 9), Transport tool 10), JCR 11), EA 14) |
| Category 9 – Downstream transportation and distribution | - | 77,369 | 91,621 | Transport tool 10) |
| Category 10 – Processing of sold products (coal combustion products) | – | 427,019 | 466,235 | GEMIS 1), EPD 12) |
| Category 11 – Use of sold products | 15,647,657 | 6,241,957 | 8,355,785 | IPCC 13) |
| Category 15 – Investments | – | 450,651 | 461,872 | Akenerji |
| Total | 18,322,716 | 11,821,305 | 13,814,779 | |
| Category 15 – Investice − biogenní 15) | - | 49,894 | 25,865 | Akenerji |
1) GEMIS: https://iinas.org/downloads/gemis-downloads/
2) Winnipeg: https://legacy.winnipeg.ca/finance/findata/matmgt/documents/2012/682-2012/682-2012_Appendix_H-WSTP_South_End_Plant_Process_Selection_Report/PSR_rev%20final.pdf
3) Incopa: https://www.incopa.org/wp-content/uploads/2019/02/INCOPA_LCA_Executive_Summary_web.pdf
4) EPA SEFA: https://cfpub.epa.gov/si/si_public_record_report.cfm?Lab=NRMRL&dirEntryId=335071&subject=Air%20Research&showCriteria=0&searchAll=Air%20and%20Energy&actType=Product&TIMSType=PUBLISHED+REPORT&sortBy=revisionDate
5) The Royal Society of Chemistry: https://www.rsc.org/suppdata/c8/gc/c8gc00868j/c8gc00868j1.pdf
6) EPA: https://cfpub.epa.gov/si/si_public_record_report.cfm?Lab=CESER&dirEntryId=349324
7) EC: https://joint-research-centre.ec.europa.eu/welcome-jec-website_en
8) AIB: https://www.aib-net.org/facts/european-residual-mix
9) The North Sea Transition authority Carbon footprint of UK natural gas imports of July 28, 2023.
10) GHG Protocol Transport Tool: https://ghgprotocol.org/calculation-tools-and-guidance
11) JRC: https://joint-research-centre.ec.europa.eu/welcome-jec-website_en
12) EPD Český cement: https://www.cenia.cz/wp-content/uploads/2019/05/EPD-SVC-2018-11-01.pdf
13) IPCC Guidelines for National Greenhouse Gas Inventories: https://www.ipcc-nggip.iges.or.jp/public/2006gl/pdf/2_Volume2/V2_2_Ch2_Stationary_Combustion.pdf
14) EA: https://www.gov.il/BlobFolder/generalpage/dochmeshek/he/Files_doch_meshek_hashmal_2023_24_en_Pua_Report.pdf
15) This is a newly reported category that also includes the calculated value for 2024.
In 2025, a reduction in emission intensity (see definition in the chapter Transition Plan of this Report) to 0.24 t CO2e/MWh was achieved. The reduction in emission intensity compared to 2024 is 9%. Using the methodology and values according to CEZ Group Sustainability-Linked Financing Framework, the emission intensity was also 0.24 t CO2e/MWh, thus meeting the 2025 target as set out in the terms of the sustainability bond issued in 2022 (ISIN: XS2461786829) and bank loans with reference to meeting this emission target. When using the methodology according to CEZ Group Sustainability-Linked Financing Framework, this is a reduction of 34.2% between 2019 and 2025.
| 2019 | 2024 | 2025 | Share 2025/2024 in % | |
|---|---|---|---|---|
| Emission intensity | 0.38 | 0.27 | 0.24 | 90 |
The installed capacity of CEZ Group‘s power and heating plants, broken down by type of generating facility and country, is listed in the CEZ Group 2025 Annual Financial Report, chapter Overview of Generation Sources and Balance of Electricity, Heat, and Natural Gas of CEZ Group. The chapter also contains data on the share of individual types of facilities in the total electricity generation of CEZ Group in percentages (the energy mix). Installed capacity and energy generation from renewable energy sources are listed separately.
The most significant item in total energy consumption is the energy chemically bound in fuels used to produce electricity, district heating, cooling, and process steam. In addition, the total energy consumption includes own consumption of electricity for electricity generation, consumption of electricity for heat supply for heating purposes, consumption of electricity for other purposes (buildings maintenance, lighting, etc.), own consumption and losses of process heat, and own consumption of district heating (heating, hot water, etc.).