ČEZ is one of the leading energy companies in the Czech Republic.  At the General Meeting of CEZ in June 2020, we stressed the importance of having their strategy validated by the "Science Based Target Initiative" (SBTi). We held an introductory workshop between ČEZ and CDP (coordinator of the SBTi), suggesting that our fellow Climate Action 100+ investors join us as well. As co-lead of the CA 100+ discussions, we reiterated this expectation. Then, in January 2022 we met Kateřina Bohuslavová, the new Head of Sustainability at ČEZ and again highlighted the importance of SBTi.

On 23 June 2022 ČEZ publicly announced that it had obtained the Science Based Target validation "well below 2°C by 2030" for its climate strategy to 2030 (carbon intensity reduction from 0.38 tons of CO2 per megawatt-hour in 2018 to 0.16 in 2030). We would be in favor of an alignment at 1.5°C.

However, for a company with 4.8 Gigawatt of coal in 2020 and 37% of coal in the energy mix, this result would be an excellent example for all emitters in countries whose energy mix is heavily dependent on coal. CEZ had 8.1 GW in 2015 and an exit is now planned in 2038. Knowing the many geographical constraints in the Czech Republic and given the geopolitical situation, it is worth stressing the importance of this result.

“The cooperation between ČEZ and Generali is now in its fifth year. The on-going bilateral dialogue with Generali, as well as wider discussions within the CA100+ (Climate Action 100+) initiative, have helped us to further improve our communication regarding our coal exposure and emissions reduction.

The feedback from investors and from financing banks has contributed significantly to the ČEZ Group’s decision to modify its strategy and put more emphasis on ESG topics. As a result, we published the accelerated strategy of the ČEZ Group under the new name Clean Energy for Tomorrow in May 2021. This strategy includes more ambitious commitments on decarbonisation, which will be enabled by faster closure of our coal plants and 6000 MW of new renewables capacity by 2030.

This strategy also increased our focus on ESG policies and set specific ESG KPIs. We particularly valued our discussions with Generali on the importance of setting emission reductions targets in-line with the SBTi guidelines. Following the announcement of the accelerated strategy, we were able to send a commitment letter to SBTi, join their initiative Business Ambition for 1.5°C. 1 and submit our carbon reduction targets for validation.  

All these steps were taken in 2021 and our cooperation with Generali and CA 100+ have helped in onboarding the relevant people within the ČEZ Group.”

Barbara Seidlová, ČEZ Head of Investor Relations – March 2022