Workers in the Value Chain
Our company is committed to ensuring fair working conditions, safety and respect for all workers in the value chain.
CEZ Group has a sophisticated management system, including policies that directly or indirectly affect workers in the value chain based on legislative requirements and internationally recognized conventions and standards. At the same time, they contain explicitly stipulated requirements across human rights areas.
The prohibition of child, forced, or compulsory labor, human trafficking, etc., is completely unquestionable. CEZ Group follows the conventions of the International Labor Organization and the United Nations, and to promote the protection of the rights of workers in the value chain, CEZ Group has also joined the UN Global Compact initiative.
Policies describing the approach to value chain workers and actions to ensure or enable remediation of impacts on human rights include CEZ Group Compliance Management System Policy, CEZ Group Sustainable Supply Chain Policy, CEZ Group Occupational Health and Safety Policy, Community Relations Policy, and many others. Related requirements are reflected not only in CEZ Group’s own activities, but also in managing relationships with suppliers. The implemented management system includes actions to prevent, mitigate, and eliminate negative impacts throughout CEZ Group’s value chain and is regularly updated, including related binding documents such as the CEZ Group’s Code of Conduct and the Suppliers’ Commitment to Ethical Conduct, and business terms and conditions.
When addressing sustainability issues, CEZ Group aims to involve its suppliers, their employees, and other stakeholders. For this purpose, related actions were introduced in 2024, including:
- Organizing workshops with suppliers and their representatives on the topic of sustainability.
- Requesting feedback from suppliers, including within the framework of stakeholder dialog, and determining their approach to sustainability issues (e.g., within the framework of ESG questionnaires).
- Establishment of a website describing CEZ Group’s approach to sustainability and related requirements in relation to suppliers.
CEZ Group maintains active cooperation with suppliers and stakeholders through various communication channels. These also include an established mechanism for submitting and handling reports regarding compliance with CEZ Group’s Code of Conduct (CEZ Group’s Whistleblowing Hotline), including observing the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the OECD Guidelines for Multinational Enterprises that include workers in the value chain. CEZ Group monitors and verifies whether suppliers comply with the rules set out in the Commitment to Ethical Conduct. For this purpose, it conducts compliance audits in its supply chain. CEZ Group provides transparent information and a detailed description of this issue in the chapter Code of Conduct and Ethics in CEZ Group of the Sustainability Report 2024.
Further information about CEZ Group’s principles and approach to impacts on human and labor rights is contained in the chapter Own Workforce, Business Conduct, and Supplier Relations of the Sustainability Report 2024.
CEZ Group strives to prevent, mitigate, or eliminate negative impacts and risks related to its activities or its supply chain. A risk management system is in place and a supply chain risk analysis is being conducted, considering risk factors in accordance with due diligence requirements. CEZ Group launched a sustainable supply chain project under the leadership of the Head of Procurement. To meet due diligence requirements, CEZ Group continues to plan its participation in industry or Group initiatives addressing related risks.
The suitability of existing actions and processes in this area was discussed directly with suppliers in themed workshops and verified during the stakeholder dialog. An email address has been set up for related questions and suggestions. In accordance with the Commitment to Ethical Conduct, supplier representatives also have the option of contacting a designated person within the respective CEZ Group company depending on the specific business relationship. Other available communication channels where value chain workers can express any concerns or needs include the Whistleblowing Hotline, which is publicly available 24/7 and allows anonymous reports.
Principles for handling received complaints are in place, including protection of whistleblowers from retaliation.
Within CEZ Group, opportunities and positive impacts of the Group’s activities are initiated and developed, includinga sustainable supply chain. This activity focuses on continuous improvement of related processes and actions. Sourcing and value chain management are integrated directly into the Group’s purchasing strategy. CEZ Group places high demands on its suppliers in terms of respecting the rights of workers in the value chain, which are described in the documents referred above – the Employee Code of Conduct, the Commitment to Ethical Conduct, and CEZ Group’s Sustainable Supply Chain Policy. These documents also describe the basis for monitoring and evaluating the effectiveness of related actions and initiatives, i.e., an area that CEZ Group will focus on intensively in the upcoming periods in accordance with due diligence requirements.
Within CEZ Group, emphasis is placed on environmental protection and the protection of the rights of people affected by CEZ Group’s value chain. Full cooperation is provided to supervisory authorities and regulators in connection with fulfilling the related requirements, and emphasis is placed on maintaining high standards across the area of sustainability, which is continuously reflected in the binding documents of CEZ Group companies, including business terms and conditions and related contractual documents. The effectiveness of sustainability policies and actions and the need to respond to related findings are continuously monitored and evaluated. The supply chain is mapped to identify and assess sustainability impacts and subsequently define related corrective actions based on an assessment of the likelihood, scope, and severity of impacts and risks related to the supply chain.
In terms of sustainability issues, CEZ Group aims to involve its suppliers, their employees, and other stakeholders. Actions are being taken to effectively involve these people and to identify their requirements and expectations. Short-term, medium-term, and long-term targets are regularly updated,and material sustainability-related impacts, risks, and opportunities of the supply chain are managed. Special emphasis is placed on taking into account the data from the notification mechanism and reports, including taking appropriate steps and providing transparent reasoning and information.
CEZ Group recognizes the need to allocate adequate resources to manage material impacts. In this context, the Board of Directors of ČEZ, a. s., as well as the statutory bodies of selected CEZ Group companies, accepted commitments that are, in accordance with the established management system, described in more detail in individual managing documents relating, for instance, to the adoption and implementation of individual CEZ Group policies.
CEZ Group regularly reports information about the supply chain through annual reports, sustainability reports, or via the data library.
Other communication platforms are also used to ensure that the Sustainable Supply Chain Policy is generally accessible. Specific actions to deepen cooperation with stakeholders in the field of sustainability are described in the chapter Stakeholders of the Sustainability Report 2024, including a series of workshops or continuous stakeholder dialog. The ESG questionnaire, which also focused on the issue of value chain workers, was sent to almost 300 CEZ Group suppliers. The information obtained from the questionnaire is another important source for the coming period, including the issue of assessing and increasing the effectiveness of cooperation.
In cooperation with stakeholders, CEZ Group focuses on improving its action plans. It is very important that stakeholders participate in setting sustainability targets and monitoring performance against these targets. The basis for cooperation with suppliers, their workers, and other representatives is described in CEZ Group’s Community Relations Policy and CEZ Group’s Sustainable Supply Chain Policy, including workers who may be particularly vulnerable or marginalized. Ensuring equal opportunities and supporting diversity and inclusion is a natural way of innovative and sustainable business, which is why these values permeate all areas of CEZ Group’s business and the Group’s strategy. CEZ Group also confirmed this position by the signing of the European Diversity Charter.
No serious human rights issues or incidents related to the upstream or downstream value chain have been identified.
CEZ Group’s targets related to the value chain and employees are set out in VISION 2030 and CEZ Group’s Sustainable Supply Chain Policy.
The common target is to act in accordance with the principles of sustainability and due diligence throughout CEZ Group’s value chain, with special emphasis placed on the protection of human rights and the environment. In line with the UN goals, sustained, inclusive, and sustainable economic growth is promoted, including productive employment and decent work for all.
In accordance with CEZ Group’s Sustainable Supply Chain Policy and the Community Relations Policy, the focus is to involve value chain workers, their legitimate representatives, or trusted delegates, including their involvement in setting sustainability targets and improving related action plans. The knowledge gained is reflected in the activities of CEZ Group and its management system, considering the necessity of continuous communication and transparency toward suppliers to meet due diligence requirements. CEZ Group acts responsibly toward stakeholders, in line with CEZ Group’s Code of Conduct and applicable legal regulations.