Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change mitigation
• Climate change adaptation
• Sustainable use and protection of water and marine resources
• Transition to a circular economy
• Pollution prevention and control
• Protection and restoration of biodiversity and ecosystems

Environmental Achievements

• 18% of EnBW Group revenue in 2020 was from environmentally sustainable activities, up from 15% in 2019. 60% of EnBW Group capex in 2020 was from environmentally sustainable activities, down from 66% in 2019. 65% of EnBW Group adjusted EBITDA in 2020 was from environmentally sustainable activities, up from 59% in 2019.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Gathering data on revenue, capex, and opex for taxonomy compliance; documenting compliance with criteria; lack of available criteria for many activities across all sectors; the need to analyze and document even when no criteria are available.
• The current threshold value of 100 g CO2e/kWh could act as a disincentive, hampering investment in activities essential for the transition to a decarbonized economy.

Mitigation Strategies

• Established a steering committee involving relevant departments; two-phase implementation project; used a risk-oriented approach to assess criteria fulfillment; voluntarily provided additional financial performance indicators (adjusted EBITDA); engaged with internal and external experts for clarification.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Standardized screening process for new suppliers; general conditions of purchase requiring compliance with occupational health and safety regulations, minimum wage, and German occupational health and safety laws; additional measures for selected product groups with increased social risk.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: EU Taxonomy Regulation, IFRS

Certifications: Null

Third-party Assurance: Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate protection
• Responsibility for employees
• Supply chain
• Sustainable investment process
• Corporate compliance
• Corporate governance
• Political engagement

Environmental Achievements

• Coal phase-out 2028 and validation of CO2 reduction pathway by the Science Based Targets initiative (SBTi)
• Reduced electricity mix carbon emissions by RE expansion
• Since 2012: €17 bn investment in renewable energies and grid expansion, additional €6 bn in next three years in sustainable generation infrastructure
• Since 2012: 31% coal capacity reduced
• Fuel switch from coal to natural gas at Heilbronn and Stuttgart-Münster and Altbach/Deizisau in 2026
• Climate-neutral gases used in gas power plants from 2035
• Publication of the EnBW human rights policy
• Release of pollutant emissions targets (SO2, NOx)
• Successful application and expansion of EU taxonomy reporting
• Further development of the sustainability assessment as part of the investment approval process
• Reduction of CO₂ footprint
• Preservation of biodiversity
• Responsible use of resources
• Water and soil protection
• Energy efficiency
• Emission control

Social Achievements

• Coal phase-out - just transition
• Human rights analysis of supply chain risks and expansion of compliance reporting processes in accordance with the German Supply Chain Due Diligence Act (LkSG)
• Initiator of a multi-stakeholder energy industry dialog for human rights due diligence
• Diversity strategy: Diversity, equity and inclusion strategy with three focal points: Success and opportunities, inclusive culture and diverse ecosystem
• Climate-friendly fast-charging park and climate-neutral corporate mobility
• Internal four-week sustainability event: 1,500 participants in EnBW sustainability challenge
• Group policy in place for occupational health and safety
• Occupational health and safety management system at Netze BW and other EnBW subsidiaries based on international standards.
• Major EnBW units, such as EnBW Offshore Service GmbH, also certified in accordance with OHSAS 18001 or ISO 45001.
• Prevention and training for accident avoidance
• Occupational health management
• Programs to promote diversity and engagement in networks
• Annual employee reviews to determine how each individual can quickly achieve their personal goals and unlock new perspectives
• Leadership development oriented to current development needs
• Support for individual further education/training
• Group-wide employee satisfaction surveys on an annual basis
• Flexible and trust-based working hours
• BestWork-Offer for employees
• Children’s office
• Support and advice: Parental leave, childcare, emergency situations, daycare
• Suitable HR instruments (such as further training) and forward-looking HR planning for coal phase-out - just transition

Governance Achievements

• ESG criteria integrated in investment approval process
• EU taxonomy: Taxonomy-aligned expanded capex
• Remuneration system linked to sustainability criteria
• Political engagement
• Implementation of the German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG)
• Compliance with the requirements of the German Supply Chain Act
• Complaints procedure for reporting infringements
• 97% of procurement volume is covered by suppliers who have signed the EnBW Supplier Code of Conduct
• Automated risk assessment integrated into supplier management
• Supply chain analysis standardized and established for main components, commodities and source countries
• Independent grievance mechanism put in place via enhanced compliance reporting processes
• Human rights steering committee established
• Digital carbon emission tracking tool established for transparency on supply chain emissions
• Carbon emissions a significant award criterion in tenders
• Targeted collaboration and partnering to achieve carbon emission reductions jointly with EnBW suppliers

Climate Goals & Targets

Environmental Challenges

• Increasing competition due to entry of new market participants in the core business
• New competition due to market entry of EnBW in new business fields
• Optimal positioning with respect to the regulatory environment and highly competitive market
• Supply chain disruptions
• High commodity prices
• Increased CO2 prices
• High electricity costs
• Extensive and long approval procedures for grid expansion
• Widespread use of photovoltaics
• High expansion targets for wind power
• Growing prevalence of electric cars and electric heating systems
• Diminishing investment conditions for transmission and distribution grids in the mid-term
• Lower equity return rates will be set as of the fourth electricity regulatory period (from 2024) and gas (from 2023)
• Electricity generation is becoming increasingly uneven – fluctuations have an impact on grid stability
• Connection of decentralized renewable electricity generation to the grid requires extensive grid expansion measures for the next decades
• The cessation of Russian gas imports and the integration of newly build LNG terminals will lead to altered gas flow directions and transport capacities to serve the stable gas demand in the mid-term
• Germany as a transit country has a large proportion of cross-border trading
• Reduced natural gas demand in Europe poses a volume risk to grid operators
• Time-lags between spending and remuneration for grid investments

Mitigation Strategies

• Further development from an integrated energy supplier to a sustainable and innovative infrastructure partner
• Focus on growth in renewable energies, grids and customer solutions (e-mobility, telecommunications and broadband)
• Active in Germany and selected foreign markets
• Comprehensive business partner audit of all direct LNG suppliers
• Diversification of gas and coal procurement
• Regional expansion into CWE/Nordics
• Continuous improvement to reduce the different types of waste generated
• Waste incineration
• Co-incineration of sewage sludge
• Improving CO₂ emissions from the use of passenger cars
• Significantly expanding the electric vehicle fleet
• Optimizing denitrification and desulphurization plants
• Shutting down coal-fired power plants and substituting them with gas-fired power plants
• EnBW Networks Energy Efficiency service to industrial customers
• Online "Climate Management System Workshop"
• Procurement of green power and biogas
• Building facilities that allow fish to ascend and descend rivers at the sites of hydropower plants
• Targeted human rights and environmental risk management
• Detailed analyses performed for individual goods and services; reduction measures launched in collaboration with suppliers
• Investment measures (IMAs) to compensate TSOs for time-lags in grid investments
• Capex true-up to cover investments and depreciation
• Regulatory account to compensate for deviations between allowed revenue cap and actual grid revenue
• Smart technologies (e.g. controllable distribution substations) potentially reduce the extent of grid expansion
• Expansion of electricity grids to integrate renewable generation and newly generated demand by electric cars and electric heating system, smart grid components optimize the expansion of distribution grids. H2ready renewal measures in gas distribution grids

Supply Chain Management

Supplier Audits: Comprehensive business partner audit of all direct LNG suppliers

Responsible Procurement

• EnBW Supplier Code of Conduct
• Carbon emissions a significant award criterion in tenders

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: SBTi, EU Taxonomy

Certifications: OHSAS 18001, ISO 45001

Sustainable Products & Innovation

• Green electricity
• Climate-neutral gases
• Biomethane
• Bio-LNG
• Hydrogen

Awards & Recognition

• Best German CPO (multiple times)
• Most downloaded and best-rated electric mobility app in Germany

Environmental Metrics

ESG Focus Areas

• Climate change
• Renewable energies
• Energy efficiency
• Human rights
• Diversity & Inclusion
• Supply chain sustainability
• Governance

Environmental Achievements

• Reduced Scope 1 and 2 emissions by more than a third (2018-2023)
• Increased renewable share of generation capacity by two thirds (2018-2023)
• Reached almost full Supplier Code of Conduct coverage (86% in 2023)
• Achieved a reduction of around 24% in carbon emissions and energy consumption at representative reference sites by 2023 (exceeding the target)

Social Achievements

• Consistently high People Engagement Index (PEI)
• Implemented requirements of German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG) effective January 1, 2023
• 97% of procurement volume covered by suppliers who signed the EnBW Supplier Code of Conduct

Governance Achievements

• Established a Sustainability Committee
• Integrated environmental/climate protection targets and key figures into the company-wide investment approval process since 2018
• Sustainability assessment as a fixed component for approval by EnBW Investment Committee
• Implemented a science-based decarbonization path
• Achieved leading positions in ESG ratings (e.g., MSCI: AA; Sustainalytics: <30)

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate-related risks (e.g., extreme weather)
• Transition risks (e.g., regulatory changes, market shifts)

Mitigation Strategies

• Developed alternative sourcing strategies
• Systematic climate risk analyses for all projects and existing infrastructure
• Specific mitigation measures to address climate-related and transition risks
• Implementation of a robust human rights policy and Supplier Code of Conduct

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• EnBW Supplier Code of Conduct
• Principles of Conduct for Responsible Procurement
• Automated risk assessment integrated into supplier management
• Detailed risk analysis for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Expansion of renewable energies
• Development of energy-efficient products

Reporting Standards

Frameworks Used: EU Taxonomy, Science Based Targets initiative (SBTi), CDP

Certifications: ISO 14001, ISO 50001, ISO 27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green electricity
• Bio natural gas
• Hydrogen

Awards & Recognition

• Not disclosed