ESG Corporate Governance
CEZ Group is committed to transparent and effective sustainability and ESG governance.
The ESG Office is led by the Chief Sustainability Officer (CSO), Michaela Chaloupková, member of the Board of Directors and Chief of the Administration Division. The CSO and the CEO Daniel Beneš are both sustainability leaders in CEZ Group. ESG Office is responsible for everyday sustainability agenda, non–financial reporting, coordination of ESG initiatives, and management of ESG working groups.
ESG management uses the Centralized-coordination-decentralized-implementation model.
Chief Executive Officer and Chairman of the Board of Directors of ČEZ, a. s.
member of the Board of Directors, Chief of the Administration Division and Chief Sustainability Officer.
ESG Advisory Committee
The ESG Advisory Committee is an advisory body to the CSO and, based on its experience, focuses on comprehensive support of CEZ Group's ESG activities, searching for risks and potential weaknesses and issuing recommendations for their elimination or minimization.
ESG External Advisory Committee
The ESG External Advisory Committee is composed of independent experts in the areas of Environmental, Social and Governance. The Committee has an informational, proposal and recommending function.
ESG Projects
ESG Projects are projects led by teams managed within one division to implement ESG objectives approved by the SSC across the CEZ Group. The ESG Projects are headed by managers appointed by the initiative sponsors.
ESG Working Groups
ESG Working Groups are cross-divisional management teams that implement ESG objectives approved by the SSC across the CEZ Group. The ESG Working Groups are headed by leaders appointed by the Chairwoman of the ESC.
ESG Education
CEZ Group is committed to the highest quality of sustainable management. Each member of the Board of Directors, the CSO, and other top management have received ESG-related certifications. The programs are offered by higher education institutions in the United States of America and Czechia:
- Berkeley Law: ESG: Navigating the Board’s Role
- Berkeley Law: Sustainable Capitalism & ESG
- Diligent Institute: Diligent Climate Leadership Certification
- Prague University of Economics and Business: Academy of Corporate Sustainability Management
Policy Matrix
CEZ Group developed a policy matrix to strengthen the managerial responsibility for ESG issues. The matrix illustrates bothboard–level oversight and executive managerial responsibility for each area. Responsibilities are linked to designated positions regardless of the individuals holding them. Currently, we are systematically reviewing all policies under the Policy Matrix ESG Initiative, which will expand the matrix with specific measures and targets.
Remuneration Policy
Remuneration of Body Members is agreed in a service contract concluded individually with each Body Member of the Company, approved by the Supervisory Board in case of members of the Board of Directors and by the General Meeting in case of members of the Supervisory Board. The total remuneration of a Body Member consists of a fixed remuneration component and a variable remuneration component. It also defines key financial and non-financial performance indicators.
The Supervisory Board, in accordance with the Remuneration Policy approved by the company’s Shareholders’ Meeting, assigned all members of the Board of Directors the common task to develop CEZ Group responsibly and sustainably in accordance with ESG principles. The progress in fulfilling the task is evaluated to determine the annual variable component of remuneration. Information on incentive systems (KPIs) and remuneration policies for members of administrative, management, and supervisory bodies that are related to sustainability is published in a separate report on the total income of members of these bodies, prepared pursuant to Section 121o et seq. of Act No. 256/2004 Coll., on Capital Market Undertakings, as amended.