GRI 3-3; SASB IF-EU-110a.3 / SDG 13
The 2015 Paris Agreement on Climate Change represents a commitment to limit global warming to well below 2°C above pre-industrial levels and to pursue efforts to limit the increase to 1.5°C. We fully support the commitment of the United Nations’ Paris Agreement on climate change. In 2021, we strengthened our commitment to becoming a carbon-neutral company by incorporating our sustainability strategy into the corporate strategy and creating a unified accelerated strategy VISION 2030—Clean Energy of Tomorrow. We moved forward our goal to be climate neutral by a decade to 2040 in May 2022. This decision was motivated by three drivers: (1) the annual review of VISION 2030— Clean Energy of Tomorrow, (2) the launch of the REPowerEU plan, and (3) the proposal of the European Commission to set stricter goals within the Fit for 55 package. In CEZ Group, the Board of Directors is responsible for the Environmental Protection and Safety Policy and the Energy Policy. Environmental protection within the policies is based on the Environmental Management System according to ISO 14001 and the Energy Management System according to ISO 50001.
CEZ Group reports its GHG emissions using the methodology of Greenhouse Gas Protocol: Corporate Accounting and Reporting Standard and 2006 IPCC Guidelines for National Greenhouse Gas Inventories. CEZ Group’s inventory Scope 1 and 2 for reporting is given by financial control: this includes all companies in which ČEZ, a. s., has a financial interest of more than 50% or controls the company. In the methodology, emissions are defined in three scopes: Scope 1, 2, and 3. We report Scope 1 and Scope 2 emissions fully, whereas in Scope 3, we report only categories relevant to CEZ Group.
In 2021, the sustainability strategy targets were set and 2019 was set as base year to maintain trend tracking over the three-year reporting horizon.
GHG emissions are measured directly in production (continuous monitoring) or calculated using emission factors (EF) — their sources are listed in the chart below. Non-CO2 GHGs are converted to CO2 equivalents using GWP coefficients from the IPCC Sixth Assessment Report for the 100 year-time horizon. All GHGs covered by Kyoto Protocol are included (CO2, CH4, N2O, HFC, PFC, SF6, excluding NF3, which is not used within CEZ Group). Since 2021, we have obtained external assurance of our Scope 1 and Scope 2 GHG emissions, and since 2022, the Scope 3 categories relevant to CEZ Group have also been audited.
GRI 305-1; SASB IF-EU-110a.1
Scope 1 emissions come from the burning of fossil fuels to generate electricity and heat (CO2, CH4, and N2O), fuels for vehicles we own or operate (CO2), fugitive coal mining emissions (CH4), biomass burning (CH4 and N2O) and minor leaks from cooling, air conditioning equipment and high-voltage switches (HFC, PFC, and SF6).
Scope 1 emissions are currently the most significant in the utility sector. Nevertheless, their importance will decrease with the transition to low emission energy sources. Exactly 96.83% of CO2 emissions from our energy production were within the sphere of the EU Emissions Trading System.
|Unit||2020||2021||2022||Source of emission factor|
|Fuels from facility operations||tCO2||22,458,780||18,702,178||17,851,569||Laboratory analysis, NIR CZ2)|
|Emissions from non-generation diesel generators||tCO2e||1,014||224||106||NIR CZ2)|
|CH4 source emissions||tCO2e||75,2901)||80,9131)||75,885||IPCC3)|
|N2O source emissions||tCO2e||536,5441)||119,6931)||156,730||IPCC3)|
|Fugitive CH4 emissions from coal mining||tCO2e||335,5221)||26,7001)||15,564||Laboratory analysis / IPCC3)|
|Fugitive CH4 emissions from landfill||tCO2e||11)||11)||13||IPCC3)|
|HFC, PFC and CH4 apart from facility operations||tCO2e||1,2521)||1,4031)||2,028||IPCC3)|
|- o/w leakages of ozone-depleting substances||tCO2e||5.881)||6.081)||0.00||IPCC3)|
|Emissions from transport||tCO2e||57,640||54,613||53,997||EC4)|
|Biomass from facility operations||tCO2e||1,534,381||1,293,425||1,063,632||Laboratory analysis, NIR CZ2)|
1) Data recalculated and corrected using GWP coefficients from the IPCC Sixth Assessment Report for a 100-year time horizon.
2) National greenhouse gas inventory report, Czechia: CZE_NIR-2022-2020_UNFCCC_complete_ISBN.pdf (chmi.cz)
3) IPCC / TFI: IPCC / TFI : Intergovernmental Panel on Climate Change / The Task Force on National Greenhouse Gas Inventories
4) https://ec.europa.eu/jrc/en/jec (European Commission’s Joint Research Centre, EUCAR and Concawe)
|Fuels from facility operations||tCO2||22,458,780||18,702,178||17,851,569|
|Emissions from non-generation diesel generators||tCO2e||1,014||224||106|
|CH4 source emissions||tCO2e||75,2901)||80,9131)||75,885|
|N2O source emissions||tCO2e||536,5441)||119,6931)||156,730|
|Fugitive CH4 emissions from coal mining||tCO2e||335,5221)||26,7001)||15,564|
|Fugitive CH4 emissions from landfilling||tCO2e||11)||11)||13|
|HFC, PFC and CH4 apart from facility operations||tCO2e||1,2521)||1,4031)||2,028|
|Emissions from transport||tCO2e||57,640||54,613||53,997|
|Biomass from facility operations||tCO2e||1, 534,381||1,293,425||1,063,632|
*Other countries include: Bulgaria, France, Germany, Austria, Hungary, Serbia, Netherlands, Italy
1) Data recalculated and corrected using GWP coefficients from the IPCC Sixth Assessment Report for a 100-year time horizon.
In accordance with the GHG Protocol and in order to minimize double counting of emissions between Scope 1 and 2, CEZ Group treats the grid consumption as if it were supplied by its own facilities.
Reported Scope 2 GHG emissions relate to losses in the distribution network. We report emissions according to the location-based methodology. In 2021, distribution was sold off in Bulgaria, where production in previous years had not exceeded supply, therefore GHG emissions were reported in Scope 2. Currently, CEZ Group operates electricity distribution systems whose losses, or related GHG emissions, are covered by its own generation and are therefore counted as Scope 1 emissions.
|Scope 2 Emissions||Unit||2020||2021||2022||Source of EF|
|Total||t CO2e||333,409||142,698||0||Carbon Footprint|
GRI 305-3; SASB IF-EU-110a.2
Scope 3 includes all indirect greenhouse gas emissions resulting from the activities of CEZ Group, which are not included in Scope 1 and Scope 2. The GHG Protocol divides Scope 3 GHG emissions into 15 categories that cover indirect emissions in the value chain from upstream and downstream activities.
Relevant categories for CEZ Group are:
- Category 1: Purchased goods and services,
- Category 3: Energy and fuel-related activities not included in Scope 1 and 2, where emissions from purchased fuels for production (coal, natural gas, biomass, fuel oils) are included, excluding emissions from own coal extraction (included in Scope 1) and excluding emissions from the purchase of petrol and diesel for transport (included in Scope 1), emissions from distribution losses from the purchase of electricity for own consumption, e.g. for pumped storage plants or during power plant shutdowns, emissions from the generation of purchased electricity that is subsequently sold,
- Category 11: Use of sold products (emissions from sales of natural gas, coal and electricity),
- Category 15: Investments.
In 2022, the GWP coefficients were updated to the IPCC Sixth Assessment Report for a 100-year time horizon. Duplicities in categories 3 and 11 were removed, data were recalculated and corrected. We will evaluate and calculate other relevant Scope 3 categories.
|Scope 3 Emissions||Unit||2020||2021||2022||Source of EF|
|Category 1 – Purchased goods and services||tCO2e||48,6111)||40,428||29 977||GEMIS3|
|Category 3 – Energy and fuel-related activities||tCO2e||1,825,3062)||1,265,0852)||539 640||GEMIS3) a EC4)|
|Category 11 – Use of sold products||tCO2e||11,832,281||9,211,727||11 265 875||IPCC5)|
|Category 15 – Investments*||tCO2e||N/A||N/A||427,283||Akenerji6)|
* Reported since 2022.
1) Data corrected.
2) Data recalculated and corrected using GWP coefficients from the IPCC Sixth Assessment Report for a 100-year time horizon.
4) EC (European Commission’s Joint Research Centre, EUCAR and Concawe)
GRI 3-3, 305-4, 305-5; SASB IF-EU-110a.3
|CO2e per generated electricity and heat||t CO2e/MWh||0.34||0.29||0.29|
In 2021, CEZ Group accelerated its sustainable strategy and fully integrated it into the corporate strategy VISION 2030—Clean Energy of Tomorrow. We set ambitious targets to support the transition of the energy sector to low emission energy generation:
- We will reduce CO2e emissions in line with the Paris Agreement well below 2°C by 2030.
- We will reduce the emission intensity from 0.38 tCO2e/MWh in 2019 to 0.26 tCO2e/MWh in 2025 and to 0.16 tCO2e/MWh in 2030.
- We will reduce the share of coal-fired electricity generation from 39% in 2019 to 25% by 2025 and 12.5% by 2030.
Our climate targets are aligned with the Science Based Targets initiative (SBTi). The SBTi validated our near-term targets in May 2022. We regularly monitor our progress towards these targets and create new initiatives in response to new legislation, stakeholders, and markets. Our goal is to be a leader in the transition to clean energy in the CEE region. Together with other European energy groups, we registered our commitments to reduce greenhouse gas emissions under the Non-State Actor Zone for Climate Action (NAZCA), formed before the Paris Climate Conference in 2015.
In our accelerated strategy, we set the target to reduce emission intensity (Scope 1 and 2) by more than 50% compared to the base year 2019. To achieve the target, we use innovative technologies in our production; we will decarbonize and eventually phase out coal production of electricity and heat. We also plan to build a new unit in our nuclear plant in Dukovany and increase the share of renewable energy in our portfolio.
In 2022, with an overall reduction in electricity and heat generation compared to 2021, we have reduced our emission intensity by 0.8%; coal generation remains at 2021 levels given the current geopolitical situation; natural gas generation has decreased by 22% due to gas supply constraints; and renewable generation has decreased by 21%, mainly due to climatic conditions. Nuclear generation increased by almost 1% to 31.02 TWh.
Avoided emissions (in tCO2e)
Avoided emissions are defined as emissions that are not emitted due to the generation of electricity or heat from non-emitting sources (nuclear or renewable) instead of fossil fuel sources. The use of non-emitting sources prevents the generation of greenhouse gas emissions that would otherwise be emitted by the mix of the existing portfolio of CEZ Group combustion sources. By using non-fossil sources for electricity and heat generation, the following amounts of GHG emissions were avoided in CEZ Group between 2020 and 2022.
|Nuclear sources||t CO2e||24,907,354||24,630,558||24,760,477|
|Renewable energy sources||t CO2e||3,448,715||2,605,076||2,014,019|
To achieve the goal of our vision, we plan to decarbonize the generation portfolio via a gradual phase-out of coal-fired plants. We plan to completely stop using coal-fired plants by 2038 at the latest; however, an earlier date is very likely. CEZ Group has made medium and long-term commitments to coal decommissioning:
- Reduce the share of coal-fired electricity generation to 25% by 2025 and 12.5% by 2030.
- Transform coal-fired locations into new lower-carbon or no-carbon fuels such as natural gas, biomass, and hydrogen. In 2022, the environmental impact assessment process was completed for the Mělník steam power plant, which is expected to replace coal-fired heat generation for the capital city, Prague, by 2030. The replacement of coal-fired heat generation is currently under consideration in Dětmarovice, Trmice and Prunéřov.
GRI 2-27, 305-6
|Production, import, export||t CFC-11e||0||0||0|
Ozone-depleting substances (ODS) are chemicals that damage the ozone layer in the stratosphere. CEZ Group does not produce, import, or export these compounds. We avoid using ODS whenever possible; minor emissions from ODS come from leaks in cooling and air-conditioning equipment still used in CEZ Group. From 2022 onwards, emissions of these substances are counted under CO2e in Scope 1.
The strategic priority of VISION 2030 - Clean Energy of Tomorrow is to transform the generation portfolio to a low-emission one and achieve carbon neutrality by 2040. The share of coal in production is steadily decreasing; currently more than 60 % of the total generation of CEZ is made up of emission-free sources including nuclear.
Nuclear power plants are a part of a carbon-neutral and stable portfolio. CEZ takes measures to increase their efficiency to ensure stable and reliable operation, such as the renewal of equipment and modernization of Dukovany nuclear power plant.
The need to address climate change is the primary reason for a transition from an energy sector dominated by fossil fuels to one based on emission-free energy sources. A transformation of the energy sector offers opportunities for sustained economic development, energy security, improved health, job creation, and other societal benefits. Generating power from renewable sources is one part of our energy transition. CEZ Group will focus on increasing the capacity of existing emission-free renewable sources in operation and on building new renewable energy sources – mainly photovoltaic power plants.
Gas plays an important role in energy transition by allowing a gradual coal phase-out. A quarter of the total CO2 emissions in the Czech Republic is generated by heat production, which historically relied heavily on coal. The transformation of CEZ Group´s heating plants is one of the key areas through which we will achieve our environmental commitments and low-emission production that we have set out in our strategy VISION 2030 – Clean Energy of Tomorrow.