EU Taxonomy KPI Report
CEZ Group reports key indicators of the EU taxonomy in accordance with EU Regulation 2020/852, the so-called Taxonomy Regulation, and related delegated acts (the EU taxonomy) since 2022.
CEZ Group‘s activities in energy sector and energy services are primarily focused on significantly contributing to Climate Change Mitigation (CCM). The share of the economic activities contributing to the objectives Transition to a Circular Economy (CE) and Sustainable use and protection of water and marine resources (WTR) on the KPIs is insignificant. These aligned activities are closely linked to these chapters Climate Change, Pollution, and Water Resources of this Report. Economic activities contributing to Climate Change Adaptation (CCA), Pollution Prevention and Control (PPC), and Biodiversity and Ecosystem Protection (BIO) are not represented in CEZ Group‘s portfolio of activities for 2024.
Full EU taxonomy disclosures and information are published in CEZ Group 2024 Annual Financial Report – chapter 7.1 EU taxonomy and annexes 10.3 to 10.5.
| Objectives | Proportion of Turnover / Total Turnover (%) | Proportion of CAPEXt / Total CAPEXt (%) | Proportion of OPEXt / Total OPEXt (%) | |||
|---|---|---|---|---|---|---|
| Aligned | Eligible total | Aligned | Eligible total | Aligned | Eligible total | |
| CCM – Climate Change Mitigation | 35.5 | 40.4 | 22.1 | 23.6 | 53.3 | 64.8 |
| CCA – Climate Change Adaptation | – | – | – | – | – | – |
| WTR – Water Protection | 0.0 | 0.1 | 0.0 | 0.0 | 0.1 | 0.1 |
| CE – Circular Economy | – | 0.0 | – | 0.4 | – | 0.6 |
| PPC – Pollution Prevention and Control | – | – | – | – | – | – |
| BIO – Biodiversity and Ecosystem Protection | – | – | – | – | – | – |
| Turnover | CAPEXt | OPEXt | |||||
|---|---|---|---|---|---|---|---|
| CZK billions | % | CZK billions | % | CZK billions | % | ||
| A.1[1] | Taxonomy - aligned activities | 122.4 | 35.5 | 35.0 | 22.1 | 6.7 | 53.3 |
| A.1. | Of which Generation – transitional sources (nuclear, gas) | 44.1 | 12.8 | 7.9 | 5.0 | 3.4 | 27.4 |
| A.2 | Taxonomy – eligible but not environmentally sustainable activities (not taxonomy – aligned activities) | 17.4 | 5.1 | 3.1 | 2.0 | 1.5 | 12.1 |
| A | Taxonomy – eligible activities | 139.8 | 40.6 | 38.1 | 24.1 | 8.2 | 65.5 |
| B.1 | Noneligible neutral activities | 164.9 | 47.8 | 117.7 | 74.4 | 1.2 | 9.2 |
| B.2 | Noneligible emission activities | 40.0 | 11.6 | 2.5 | 1.6 | 3.2 | 25.3 |
| B | Taxonomy – noneligible activities | 204.9 | 59.4 | 120.2 | 75.9 | 4.3 | 34.5 |
| A+B | Total | 344.7 | 100.0 | 158.2 | 100.0 | 12.6 | 100.0 |
| A.1 / A | Share of aligned activities in total eligible activities 2) | - | 87.5 | - | 91.8 | - | 81.5 |
1) The category identification in column 1 is explained in Annex 4 to this Report.
2) Level of compliance with alignment criteria across all eligible activities.
The reporting and criteria assessment process was carried out by collecting data and information across fully consolidated companies in CEZ Group, at the level of individual economic activities. CEZ Group discloses eligibility and alignment of own economic activities in line with legal requirements.
A list of all eligible activities of CEZ Group with activity codes according to the EU taxonomy is available in CEZ Group 2024 Annual Financial Report, Annex 10.3.
Overview of the Main Eligible Activities according to the EU taxonomy
| Activity name | Category | Activity code | |
|---|---|---|---|
| Generation – renewable energy sources | Generation – photovoltaic power plants | Aligned 1) | CCM_4_1 |
| Generation – wind power plants | Aligned 1) | CCM_4_3 | |
| Generation – hydroelectric power plants | Aligned 1) | CCM_4_5, CCM_4_10 | |
| Generation – biomass sources | Aligned 1) | CCM_4_20, CCM_4_24 | |
| Generation – transitional sources | Generation – nuclear sources | Aligned 1) | CCM_4_27, CCM_4_28 |
| Generation – natural gas | Aligned 1) | CCM_4_29, CCM_4_30, CCM_4_31 | |
| Distribution of electricity, heat, and low-carbon fuels | Electricity distribution | Aligned 1) | CCM_4_9 |
| District heating | Aligned 1) | CCM_4_15 | |
| Distribution of renewable and low-carbon fuels | Aligned 1) | CCM_4_14 | |
| Energy services and other eligible activities | Installation of energy efficiency equipment | Aligned 1) | CCM_7_3 |
| Installation of renewable technologies | Aligned 1) | CCM_7_6 | |
| Other ESCO services and electric mobility | Aligned 1) | See chap. 7.1.2. |
1) Only part of the activities are aligned and part of these activities are eligible, not aligned.
CEZ Group discloses information about individual aligned economic activities that have a significant impact on KPIs and about their sustainability criteria.
CEZ Group discloses eligibility and alignment of own economic activities in line with legal requirements. Compliance with applicable technical criteria is assessed and all activities are evaluated based on screening criteria. The technical screening criteria consist of a set of substantial contribution criteria for each activity for the relevant environmental objective (mainly CCM) and a set of DNSH criteria for the other five environmental objectives. The alignment is typically assessed at the level of individual activities or projects of a given company. The requirement to assess climate risks and also compliance with the requirement for minimum social safeguards are criteria with group significance across activities and are assessed at the CEZ Group level.
Approach of CEZ Group and detailed assessments of EU taxonomy-alignment of economic activities are in CEZ Group 2024 Annual Financial Report, chapter EU taxonomy-aligned Activities.
| 2023 | 2024 | |||||
|---|---|---|---|---|---|---|
| Aligned | Eligible, not aligned | Noneligible | Aligned | Eligible, not aligned | Noneligible | |
| Generation – renewable energy sources | 16.8 | 0.3 | - | 20.3 | 0.4 | - |
| Generation – transitional sources | 28.6 | 5.0 | - | 44.1 | 6.1 | - |
| Distribution of electricity, heat, and low-carbon fuels | 39.4 | 0.5 | - | 50.8 | 0.8 | - |
| Energy services and other eligible activities | 8.1 | 8.3 | - | 7.1 | 10.2 | - |
| Noneligible neutral activities | - | - | 191.8 | - | - | 164.9 |
| Noneligible emission activities | - | - | 41.9 | - | - | 40.0 |
The share of CEZ Group‘s revenues in accordance with the EU taxonomy is 35.5% (+8.2 p.p.). These are mainly revenues from electricity distribution and generation from nuclear energy. Other material activities include the construction and operation of photovoltaic power plants, the installation of energy-saving equipment, the installation of photovoltaics and heat pumps in buildings, hydropower, and heat distribution and supply. The main factors influencing CEZ Group‘s performance and operating revenues in 2024 are listed in the 2024 Annual Financial Report.
KPI Turnover disclosure for economic activities incl. KPI definition is published in CEZ Group 2024 Annual Financial Report, 10.4 Annex 4.
| 2023 | 2024 | |||||
|---|---|---|---|---|---|---|
| Aligned | Eligible, not aligned |
Noneligible | Aligned | Eligible, not aligned |
Noneligible | |
| Generation – renewable energy sources | 3.8 | 0.0 | - | 4.4 | 0.0 | - |
| Generation – transitional sources | 4.7 | 1.7 | - | 7.9 | 0.7 | - |
| Distribution of electricity, heat, and low-carbon fuels | 17.4 | 0.2 | - | 21.1 | 0.3 | - |
| Energy services and other eligible activities | 1.3 | 1.2 | - | 1.5 | 2.1 | - |
| Noneligible neutral activities | - | - | 6.2 | - | - | 117.7 |
| Noneligible emission activities | - | - | 4.3 | - | - | 2.5 |
The structure of CEZ Group‘s sustainable investments is focused primarily on the modernization and renewal of the electricity grid and distribution (CZK +2 billion). Investments in transitional sustainable activities included primarily investments in the operation of nuclear facilities at existing sites and preparatory investments in the transformation of coal sites into combined cycle power plants and gas-fired heating plants. Year-over-year higher investments went into the construction of photovoltaic power plants (CZK +0.5 billion year over year). The impact of the acquisition of GasNet Group from the CAPEXt perspective is material.
The share of EU taxonomy-aligned CAPEXt is significantly lower (22.1%) due to significant additions from acquisitions of subsidiaries. The share of taxonomy-aligned CAPEXt without reflecting acquisitions would reach 71.7%.
In line with CEZ Group‘s decarbonization ambitions, the current investment plan for 2025–2030 is focused on areas in which we expect to achieve 75% taxonomy alignment (CAPEXt).
KPI CAPEXt disclosure for economic activities incl. KPI definition changes is published in CEZ Group 2024 Annual Financial Report, 10.4 Annex 4.
Prior to its acquisition by CEZ Group, GasNet Group issued green bonds in previous years and annually makes relevant investments in the gas distribution system with the aim of increasing readiness for the use of hydrogen. The value of these investments corresponds to the reported value of activity distribution network for low carbon fuels in the CAPEXt disclosure. In accordance with the requirements for reporting the value adjusted for such financed activities, CEZ Group reports the adjusted value of aligned CAPEXt below. The Turnover KPI remains unchanged.
| CZK billions | % | |
|---|---|---|
| CAPEXt aligned | 35,0 | 22,1 |
| CAPEXt aligned – adjusted | 33,6 | 21,2 |
| 2023 | 2024 | |||||
|---|---|---|---|---|---|---|
| Aligned | Eligible, not aligned | Noneligible | Aligned | Eligible, not aligned | Noneligible | |
| Generation – renewable energy sources | 0.3 | 0.0 | - | 0.3 | 0.1 | - |
| Generation – transitional sources | 3.2 | 0.1 | - | 3.4 | 0.2 | - |
| Distribution of electricity, heat, and low-carbon fuels | 2.2 | 0.2 | - | 2.5 | 0.3 | - |
| Energy services and other eligible activities | 0.4 | 0.9 | - | 0.5 | 1.0 | - |
| Noneligible neutral activities | - | - | 0.7 | - | - | 1.2 |
| Noneligible emission activities | - | - | 3.3 | - | - | 3.2 |
EU taxonomy-aligned OPEXt reach a share of 53.3%. The result is predominantly based on maintenance and repair expenses in aligned nuclear facilities and electricity distribution infrastructure.
KPI OPEXt disclosure for economic activities incl. KPI definition changes is published in CEZ Group 2024 Annual Financial Report, 10.4 Annex 4.
The category of noneligible activities includes both activities with an impact on the environment (noneligible emission activities) and noneligible neutral activities, which have no impact on the environment.
The largest share of noneligible activities is represented by noneligible neutral activities. These activities have low impact on the environment and are outside the scope of the EU taxonomy. Noneligible neutral activities includes, for example, trading and selling commodities (electricity, gas), distribution of natural gas, manufacturing of components and servicing for energy technologies, ICT and telecommunication services, facility management, and other services. CEZ Group also assess the operation of experimental research nuclear reactors of Centrum Výzkumu Řež as part of noneligible neutral activities. The LVR-15 research reactor is used to produce radioisotopes, conduct irradiation experiments, neutron activation analysis, and perform measurements on neutron beams.
Noneligible emission activities include coal mining and the generation of electricity and heat from coal sources. Investments in coal-fired power generation are focused on maintenance, improvement of environmental performance, or ensuring operational efficiency. These are also investments necessary to secure heat supply until low-emission and emission-free sources are in operation for energy security. Investments in mining activities are focused on the necessary maintenance and reconstruction of technologies and are in line with the estimated useful life of existing mining sites. Operating expenses on noneligible activities are mainly connected to repair and maintenance of coal-fired power plants and maintenance of mining equipment. The share of these activities in KPIs is decreasing and will continue to decrease in the future in line with the commitment to gradual coal phase-out in individual generating facilities.