Workers in the Value Chain
In its activities (both through its projects and the supply chain), CEZ Group cooperates with various groups of workers who are not its direct employees, but whose working conditions may be affected at supplier level. In accordance with the CEZ Group Sustainable Supply Chain Policy, elements of due diligence for the purpose of preventing and mitigating negative impacts to people in the value chain are incorporated into supplier relationship management. Our company is committed to ensuring fair working conditions, safety and respect for all workers in the value chain.
The objectives of CEZ Group relating to the value chain and its workers are anchored in VISION 2030 and in the CEZ Group Sustainable Supply Chain Policy. The common objective is to promote the principles of sustainability and due diligence throughout the entire value chain, with a particular focus on the protection of human rights and the environment. In line with the objectives of the United Nations, CEZ Group supports sustainable, inclusive and sustainable economic growth, including decent work for all.
Persons in the value chain who may be affected by this collaboration generally include, in particular, workers of entities in the upstream value chain, for example:
- workers involved in, for example, the extraction and processing of metals or minerals,
- workers who are especially vulnerable to potential negative impacts, whether due to their natural characteristics or specific context (e.g., young workers, women, or members of minorities).
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 recognised conventions and standards. At the same time, these policies contain explicitly stipulated requirements across human rights areas.
The prohibition of child, forced or compulsory labour, human trafficking and similar practices is completely unquestionable. CEZ Group follows the conventions of the International Labour Organization (ILO) and the United Nations, and, in order 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 the management of 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: CEZ Group Code of Conduct, Suppliers’ Commitment to Ethical Conduct, or business terms and conditions.
When addressing sustainability issues, CEZ Group aims to involve its suppliers, their employees and other stakeholders. For this purpose, related measures were introduced during 2025, such as:
- Creating suitable working conditions within the framework of the established health and safety management system for suppliers, in order to prevent harm to their workers or damage to equipment.
- Demanding and supporting relevant professional and medical fitness of suppliers’ employees, carrying out control activities over compliance with legal and other standards, and support for motivating suppliers' employees to work safely.
- Sharing and promoting the Occupational Health and Safety Policy, including the CEZ Group Commitment to Ethical Conduct.
- Informing suppliers’ representatives about identified deficiencies and measures to address accidents.
- Support for recording suggestions for improvement and near misses reported by suppliers, root cause analysis, and implementation of preventive measures.
- Deepening and increasing the professional knowledge and skills of suppliers through practical training in performing risky activities.
- Cooperation with suppliers in the selection of personal protective equipment based on risk assessment.
- Training for suppliers and subcontractors in the area of occupational health and safety and other relevant topics, building on statutory training provided by the employer (e.g. occupational health and safety, fire protection, environmental protection, emergency preparedness, physical security, nuclear safety, information security and cyber security).
CEZ Group has long strived to engage its suppliers, their employees, and other stakeholders in addressing sustainability issues through the following channels:
- The suitability of existing measures and processes in this area was discussed directly with suppliers in workshops and verified as part of the stakeholder dialogue.
- A special email box supplychain@cez.cz was set up for related questions and suggestions.
- In accordance with the CEZ Group Commitment to Ethical Conduct, supplier representatives also have the opportunity to reach the designated direct contact person in CEZ Group companies, depending on a specific business relationship.
- Other available communication channels where workers in the value chain can express any concerns or needs include: the Whistleblowing Hotline, which is publicly and continuously available (reports can also be submitted anonymously).
- Policies for handling of received suggestions, including protection of whistleblowers from retaliation.
Special emphasis is placed on considering the outputs from the notification mechanism and reports, including taking appropriate steps including transparent justification and providing information.
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 discloses information on its supply chain through annual reports, sustainability reports, and the data library.
Data related to the sustainable supply chain are monitored and evaluated, and the necessary records are maintained transparently in this context.
Additional communication platforms are also used to ensure that the CEZ Group Sustainable Supply Chain Policy is generally accessible. Specific measures aimed at strengthening cooperation with stakeholders in the area of sustainability are described in the Sustainability Report 2025, in the chapter Stakeholders, including a series of workshops and continuous stakeholder dialogue. An ESG questionnaire, which also focused on issues related to workers in the value chain, was distributed to nearly 300 suppliers of CEZ Group. The information obtained in this way represents an important additional input for the upcoming period, including for the assessment and enhancement of the effectiveness of cooperation.
In cooperation with stakeholders, CEZ Group focuses on improving its action plans. It is essential that stakeholders are involved in setting sustainability targets and monitoring performance against these targets. The framework for cooperation with suppliers, their workers, and other representatives is anchored in the Community Relations Policy and the CEZ Group Sustainable Supply Chain Policy, including workers who may be particularly vulnerable or marginalized. Ensuring equal opportunities and supporting diversity and inclusion are considered natural components of innovative and sustainable business; therefore, these values are embedded across all areas of CEZ Group’s activities as well as in its group strategy. This approach is further confirmed by CEZ Group’s signature of the European Diversity Charter.
No serious human rights issues or incidents related to the upstream or downstream value chain were identified.
For further details, visit the Sustainable Supply Chain website: Sustainable supply chain | Skupina ČEZ