Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Occupational Safety
• IT, Cyber & Data Security
• Diversity, Equity & Inclusion
• Supply Chain Management

Environmental Achievements

• 81% emission reduction since 1990 (excluding Bergkamen until 2018)
• Significant reduction in GHG emissions through combustion efficiency improvements, decommissioning, divestment, and replacement of capacity with renewable energy sources.
• Plans to phase out all coal-fired generation in Germany by mid-2026.

Social Achievements

• Implementation of a leading health and social management platform, ‘LIFE’, to support employee health and welfare.
• Commitment to promoting diversity across gender, age, ethnicity, and disability.
• Continuous improvement of the integrated HSE management system.

Governance Achievements

• Establishment of an ESG office to coordinate sustainability activity.
• Agreement on an initial set of targets covering several key performance indicators within the environmental, social and governance spheres.
• Formalisation of a Net Zero Strategy and plans to decarbonize operations.

Climate Goals & Targets

Environmental Challenges

• Increasing regulatory pressure to decarbonize its portfolio.
• Potential breaches of environmental permit requirements.
• Risks to human health from air quality and waste disposal.
• Competition for water resources.
• Impacts on biodiversity and ecosystems.
• Cyber security incidents.
• Potential for breaches of labor standards.
• Risks to reputation from effects on the local community.

Mitigation Strategies

• Gradual transition from hard coal to decentralized local supplier of power and heat.
• Clear exit timetable for hard coal business.
• Investment in wind and solar businesses, green hydrogen, and energy storage.
• Upholding highest standards in workplace health and safety.
• Significant investment in ensuring resilience to cyber attacks.
• Due diligence process prior to onboarding new suppliers.
• Environmental and social impact assessments for new projects.
• Community engagement processes.

Supply Chain Management

Supplier Audits: 100% of Tier 1 suppliers by 2025

Responsible Procurement

• Supplier Assessment Questionnaire covering bribery, corruption, human rights, child labor, and forced labor.
• Compliance with STEAG’s “Purchasing Terms and Conditions for General Goods and Services”.

Climate-Related Risks & Opportunities

Physical Risks

• Acute physical risks (increased severity of cyclones or floods)

Transition Risks

• Stranding of legacy coal-fired generation assets.

Opportunities

• Growth of renewable energy businesses.
• Development of green hydrogen and energy storage.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN Global Compact

Certifications: ISO 45001 (at several locations), ISO 27001 (one business unit)

UN Sustainable Development Goals

• SDG 7
• SDG 9
• SDG 11
• SDG 13
• SDG 3
• SDG 8
• SDG 12
• SDG 15

Contribution to affordable and clean energy, industry, innovation, sustainable cities and communities, climate action, good health and well-being, decent work and economic growth, responsible consumption and production, and life on land.

Sustainable Products & Innovation

• Energy monitoring and CO2 emissions monitoring software (Optenda).

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions
• Renewable energy
• Workforce diversity
• Occupational health and safety
• Supply chain
• Business ethics and anti-corruption
• Data security

Environmental Achievements

• 84% reduction in emissions vs. 1990 (domestic power plants)
• 742,340 MWh of energy generated from photovoltaics
• 561,707 MWh of energy generated from wind
• Implementation of numerous solar and wind projects in Germany and abroad
• Modernization of existing district heating generation plants
• EU funding agreement for hydrogen generation plant (HydrOxy Hub Walsum)

Social Achievements

• Improvement and digitalization of HSE management system
• Introduction of gender quotas on STEAG Power GmbH's Management and Supervisory Boards
• Launch of new employer branding focused on diversity and employee flexibility
• Project launch to establish a systematic talent management process
• First STEAG training conference

Governance Achievements

• Establishment of the ESG Office
• Implementation of policies and processes to improve supply chain risk management
• Adoption and dissemination of the Supplier Code of Conduct
• Introduction of a written supplier due diligence policy and procedure
• Start of employee education and training on the Supply Chain Due Diligence Act (LkSG)
• No significant breaches of data protection or attacks on IT infrastructure in the last three years

Climate Goals & Targets

Environmental Challenges

• Temporary return of power plants to market operation to ensure energy security due to the war in Ukraine and potential gas shortage
• Balancing sustainable, secure, and cost-effective energy supply
• Supply chain risks related to human rights and environmental issues

Mitigation Strategies

• Investment in renewable energies and green hydrogen production
• Development of a net zero pathway with a target of 2040
• Implementation of due diligence processes for suppliers
• Development of a comprehensive sustainability strategy
• Establishment of a compliance management system and Code of Conduct

Supply Chain Management

Responsible Procurement

• STEAG Supplier Code of Conduct
• UNGC minimum standards
• ILO core labor standards

Climate-Related Risks & Opportunities

Transition Risks

• Changing demand for low-carbon energy solutions

Opportunities

• Expansion of renewable energies and green hydrogen production

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: DIN EN ISO 45001 (at selected sites), DIN EN ISO 14001 (at selected sites)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)

Investments in renewable energy, decarbonization of energy services, and commitment to climate neutrality by 2040

Sustainable Products & Innovation

• Green hydrogen
• District heating solutions using waste heat