Own Workforce

To fulfill CEZ Group’s vision, working conditions are established that support loyalty and high satisfaction of all employees and attract suitable candidates with crucial skills. CEZ Group’s commitment to social responsibility includes above-standard working conditions for all employees, support for education, promotion of equal opportunities, fair treatment, open communication, diversity and inclusion, freedom of association, work flexibility, and in many cases, enabling the work-life balance. CEZ Group applies the basic principles of social policy both in the Czech Republic and abroad. To clearly demonstrate its commitment, CEZ Group has embedded its approach in collective agreements, policies, and internal management documentation.

Managing above-standard working conditions, training, and retraining of employees depending on the strategic priorities of CEZ Group or legislative requirements is conducted by expert teams of the Human Resources department. Significant financial resources are allocated to remuneration, benefits, career and personal development of employees, enhancing their qualifications and professional competencies, and supporting employee retraining.

The Human Resources Policy adopted by the Board of Directors of ČEZ, a. s., is binding for all employees of CEZ Group companies. It defines the principles of managing employees, their knowledge and skills, performance, abilities, and behavior in accordance with the Group’s principles.

The Personnel Concept defines long-term and annual priorities in the area of managing material impacts, risks, and opportunities related to the company’s own workforce. It is based on the internal document Human Resources Management Strategy, which is updated annually.

Priorities and targets in the area of managing material impacts, risks, and opportunities related to employees are set by the Board of Directors of ČEZ, a. s., in the form of a directive. The following targets were set under VISION 2030:

• We will maintain our position as the most attractive employer for future talent and current employees.
• We will ensure transfer to another job or retraining, reskilling, or compensation for all employees affected by the coal phase–out.
• We will achieve 30% female representation in management.

Thorough social guarantees are maintained in all CEZ Group facilities. The social impact assessment within CEZ Group shows a positive working environment with no material risks or negative impacts identified for employees. Fair-treatment approaches in accordance with labor law requirements include both direct employees in a regular labor relationship with the company within the meaning of the Labor Code and agency workers.

The effectiveness of the actions taken is monitored through internal and external audits, regular employee surveys, benchmarking on the labor market, and a set grievance mechanism.

CEZ Group is preparing for the gradual phase-out and related closure or transformation of its coal-fired generating facilities, which will bring about numerous social impacts. The biggest of these include job losses, disruption to the economy of other businesses in the region, and the risk of a decline in the standard of living of residents. The implementation of the ESG strategy requires addressing the implications for employees affected by coal phase–out. Actions to mitigate these impacts are set out in the collective agreement. At the same time, CEZ Group collaborates with institutions in the affected region.

CEZ Group publicly commits to provide reassignment, retraining, reskilling, or compensation to all employees affected by the coal phase–out. Employers’ and workers’ representatives discuss specific plans for the future of the workers affected by the coal phase–out based on the following priorities:

• Maintain the necessary employment at the affected locations until their closure.
• Employ existing staff in jobs created by the transformation of the locations, both during construction and in subsequent operations.
• Employ existing employees within CEZ Group’s internal labor market.
• Provide an above-standard social compensation program for redundant employees.

To meet these priorities, CEZ Group applies the following:

• Actions set out in the collective agreement (above-standard severance pay)
• Specific motivation elements (bonuses, target bonuses)
• Employee retraining
• Specific tools in the recruitment and selection process (applications supporting the internal labor market and internal career days, mobility support)
• Outplacement program
• Cooperation with local institutions in the region

As part of its efforts to remain a preferred employer, CEZ Group also pays attention to employing people with disabilities and parents returning from parental leave. In addition, we actively address the needs of employees in different age groups.

CEZ Group provides 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, CEZ Group adjusts salaries accordingly each year. All employees are paid an adequate wage in accordance with applicable benchmarks. In addition, CEZ Group employees are offered a wide range of financial and non-financial benefits and incentives beyond those required by law or negotiated by unions or beyond those common in the country, thus positively influencing their quality of life. These benefits are related to:

• Welfare (e.g., 37.5-hour workweek, 1 week of vacation in addition to the legal limit, life insurance, supplementary investment insurance, pension scheme, loans and leases, meal allowance, life anniversary reward).
• Health care (e.g., sick days, above-standard health examinations, Health Days, online health care 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).

CEZ Group also offers structured programs and initiatives focused on increasing the knowledge, competencies, and abilities of employees, enabling them to effectively perform their duties and adapt to changing work requirements or career advancement. In addition to medical checks required by legislation, employees are offered various forms of above-standard health care.

CEZ Group views the use of AI in the field of education and development as a challenge. It is dedicated to educating employees in this area, participating in the preparation of processes required under the AI Act, and at the same time testing specific uses in connection with the analysis of feedback from training and other educational content. In practice, AI is used in the creation of e-content, including generative functionalities (graphics, editing, voiceover, translations).

In 2024, 3,290 new employees joined CEZ Group, of which about 27,5% were women. In the Czech Republic, the interest in working for the parent company ČEZ, a. s., grew for the fifth consecutive year. In total, 588 new employees were hired by ČEZ, a. s., of which 201 were employees under 29 years of age.

Safety and health protection are a top priority for the entire CEZ Group and are included in annual performance indicators. From occupational health and safety to fire protection and emergency preparedness, these topics are all fundamental elements of CEZ Group’s safety culture. All CEZ Group companies have an OHS management system in place that follows the requirements of the relevant national legislation.

Prevention of occupational accidents and work-related diseases is included in the Occupational Health and Safety Policy, announced by the Board of Directors of ČEZ, a. s. The main principles and commitments of the company in its management include:

• We prioritize safety, protection of life, and health of people over other interests and consider them an integral part of the management system.
• We strive to make occupational health and safety an integral part of the thinking, behavior, and work habits of all employees and suppliers.
• Compliance with mandatory obligations is a natural part of our activities.
• We are constantly improving our occupational health and safety management system.
• We require the same approach to occupational health and safety from our suppliers.

This policy is the primary document of the OHS management system. This policy is further developed by internal documentation, including the setting of specific targets and actions. The policy and the achievement of its targets are regularly reviewed by strategic management.

The implementation of the OHS policy and the specific targets and actions is reviewed annually within the framework of the internal control system.

The basic standard for internal audit in the Czech Republic is primarily safety reviews, which are mandated by legislative requirements (especially Section 108 of the Labor Code). These are supplemented by independent internal evaluations (reviews of technical departments, evaluation by CEZ Group’s management system department, independent reviews within the corporate structure, etc.).

The OHS management system audited or certified by an external party includes the following standards:

• ISO 45001 – certification by accredited certification bodies.
• Safe Enterprise 2017 national program, certificate is issued by the State Labor Inspection Office following an audit.
• National legislation in the field of mining activities – awards are granted by the Czech Mining Authority based on inspection activities.

Internal and external evaluations provide data and information. Subsequently, an evaluation is carried out; its result may be a finding (qualified, unqualified, suggestion for improvement), which is then dealt with in the prescribed manner. CEZ Group’s safety weaknesses and strengths are continuously reviewed, emergency plans are revised, events are rehearsed, and emergency teams, employees, and other stakeholders are trained. Within the framework of OHS, relevant legal regulations are complied with and designated sections carry out annual internal audits and risk analysis of the OHS system. Stakeholders are regularly informed about safety performance indicators. Based on the audit findings, changes in legislation, and periodic risk assessments, preventive actions are taken and safety guidelines and procedures are updated. Labor standards are also being improved.

Providing resources is among the Main Principles and Priorities of CEZ Group in the Area of Security, which are regularly included in the annual Directive of the Board of Directors of ČEZ, a. s., for Annual Tasks in 2024:

• Continuously implement the Safety and Environmental Policy.
• Provide sufficient personnel, financial, and material resources to ensure compliance with safety requirements.
• Meet safety requirements and consistently improve safety in CEZ Group, with particular emphasis on generating facilities and operational locations.
• Implement actions resulting from the selected Safety Theme of the Year for individual divisions of ČEZ, a. s., and CEZ Group companies.

Health and safety is ensured in cooperation with the relevant labor unions operating in CEZ Group. For instance, they participate in discussions on relevant internal documents of CEZ Group companies, meetings on health and safety issues and clarifications of the causes of work-related accidents, and in health and safety inspections at CEZ Group sites, which are carried out by inspection committees composed of employees of CEZ Group companies in connection with their responsibilities at the relevant workplaces or facilities. The inspection results are presented to the facility management and discussed with an appointed labor union representative. Employees are only assigned to jobs that correspond to their medical fitness, which is assessed as part of entrance occupational medical examinations. The impact of working conditions on employees’ health and ability to continue working is subsequently examined as part of periodic medical examinations.

In terms of occupational health and safety training, new employees must complete mandatory initial training and practical instruction, which usually takes place on the first day of work. Existing employees undergo refresher training every 2 years and senior employees 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. In addition, selected operational personnel undergo practical training with regard to their job classification (e.g., working at heights, movement and work on scaffolding, etc.). All employees are trained in first aid.

In the case of suppliers’ workers, the OHS training follows the training that must be legally provided by the 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 the right of entry to the facility or 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 people and work managers before starting work, and every two years thereafter.

Selected OHS Activities

• In 2023 and 2024, an extensive information campaign was carried out to raise the awareness of employees about possible safety risks and ways to avoid them. The main motto of the campaign is: “I think about security.” It promoted efforts to detect, eliminate, or minimize risks before they cause an injury, in particular by identifying dangerous situations (near misses) that have the potential to cause injury. The campaign emphasized that risk prevention is also important in private life and that observing safety rules makes sense at home as well. This supports the perception of safety and health issues as part of the behavior and habits of each individual.
• Following the fatal accident of 2 employees in 2023, CEZ Group conducted an extensive assessment of workplaces from the perspective of work in confined spaces. The outcome of the evaluation was to tighten existing or introduce new rules for safe work in these areas.
• CEZ Group supports the exchange and sharing of information between security specialists from individual CEZ Group companies. Several times a year, CEZ Group safety specialists convene with experts from other energy companies operating in the Czech Republic to learn about actions taken after accidents and share examples of good practice.
• CEZ Group representatives are active in professional employee unions, where they actively propose changes to safety legislation and comment on relevant government amendment proposals.