Sustainability

We will more consistently benchmark our future decisions and investments against sustainability criteria and align our growth accordingly. EnBW is thus taking a clear stance, even though we have been aligned towards sustainability since we began remodelling the company in 2013, for example through our investment in renewable energies and electricity grids. Now is the right time to explicitly adopt a holistic concept.

Dr. Frank Mastiaux, Chief Executive Officer of EnBW

Dr. Fran Mastiaux, Chief Executive Officer of EnBW

EnBW consolidates its sustainable corporate strategy

Climate neutrality is the top priority

Economically ambitious, beneficial for the climate and socially balanced: EnBW is consolidating its sustainable corporate strategy across the three dimensions of ecology, economy and social commitment. In doing so, the company is adhering to the requirements and targets of the Paris Agreement.

The focus of the 25-point programme of measures is the ambitious aim of achieving climate neutrality by 2035. Alongside the necessary exit from coal-fired generation, EnBW has embedded sustainability in the company’s DNA. This means that all investment decisions are consistently benchmarked against sustainability criteria.

EnBW began realigning the company towards sustainability back in 2013 when it initiated its EnBW 2020 strategy. Since then, the company has fundamentally restructured its generation portfolio. Most recently, it has contributed showcase energy transition projects: the EnBW Hohe See and EnBW Albatros offshore wind farms and the Weesow-Willmersdorf solar park, the first major photovoltaic project to be constructed in Germany without public funding.

Before the Coal Phase-out Act even came into force, we had already voluntarily discontinued around 40 percent of carbon-intensive generation, for both environmental and commercial reasons. By 2030, we will have withdrawn a further 2,500 megawatts and are set to complete the phase-out by 2035.

Chief Technical Officer Dr. Hans-Josef Zimmer

Climate neutrality by 2035 at the latest

Globally, there is intense discussion of the urgent need to cut greenhouse gas emissions. In Germany, too, climate neutrality is at the top of the agenda.

In 2013, EnBW began realigning its corporate strategy increasingly towards sustainability and substantially restructuring its portfolio. The updated sustainability strategy includes the gradual exit from coal-fired generation as the next logical step. The goal is for the entire company to become completely climate-neutral by no later than 2035, an ambitious target even by industry standards. However, the first EnBW companies, such as Energiedienst, are already climate-neutral and Netze BW will become one of Germany’s first climate-neutral distribution grid operators at the start of 2021. In this way, EnBW is seeking to halve its CO2 emissions by 2030.

Measures associated with the “ecology” dimension of sustainability:

Coal phase-out / fuel switch:

At present, our coal power plants generate 4.6 gigawatts of electricity. We will gradually withdraw these plants from the market so that only the newest remain in operation in 2030. At the same time, we are examining the possibility of switching some of our plants to more climate-friendly gases or biomass. A fuel switch could instantly reduce CO2 emissions, while also securing the energy supply and making a substantial contribution towards safeguarding sites and jobs.

Green gases and hydrogen:

In the medium term, we see an opportunity for switching to climate-neutral gases such as biogas or hydrogen. However, this depends on market conditions and the political backdrop. We envisage a switch to hydrogen starting in 2035.

Use of green electricity:

We are planning to use green electricity to compensate for grid losses in the energy system.

Compensation:

We are planning to offset unavoidable residual emissions by acquiring recognised compensation certificates. However, avoiding emissions in the first place will always have priority over compensation.

In the future, we will align all portfolio decisions and investments towards sustainability criteria. The focus will remain on the continued expansion of renewable energies as well as the electricity and gas grids. This will be complemented by further aspects of sustainable infrastructure and sustainable business, such as electromobility with its key role in transforming the transport landscape and protecting the climate.

Chief Financial Officer Thomas Kusterer

Sustainable earnings growth of over 30 percent by 2025

There is an increasingly close alliance between economy and sustainability. In recent years, we have invested heavily in the expansion of renewable energies and electricity grids. The next phase of our transformation is the EnBW 2025 strategy, which will make our company a sustainable infrastructure partner beyond the energy sector through further expansion of our established businesses – renewable energies, grids, electromobility and broadband telecommunications – and the establishment of new businesses. Overall, the company is targeting substantial earnings growth of more than 30 percent by 2025.

In the years ahead, EnBW will be investing around €12 billion. Based on their contribution to Group earnings (adjusted EBITDA), renewable energies and grids now account for around 74 percent.

Measures associated with the “economy” dimension of sustainability:

Realigned financing strategy

EnBW has realigned and further developed its financing strategy to reflect its sustainability criteria. In the past two years, around €2 billion were financed through green bonds, representing one quarter of our financial bond volume. The revenue from these bonds was used in wind power, photovoltaics and electromobility.

Integrated reporting

For many years, EnBW has been campaigning on international committees for globally applicable standards in the area of sustainable capital procurement and financing. The company has become a pioneer, with a finance system geared towards sustainability and a climate-related approach to reporting and business management. It has been publishing an integrated annual report since 2014.

New business segments

Sustainability is also at the heart of operations by the new EnBW business segments. When planning new residential districts such as Stöckach in Stuttgart, for example, economic, environmental and social aspects are considered in symbiosis.

Employees are our most valuable resource and thus the focus of our sustainability strategy. In our employees, we see the architects of a sustainable future – both the company’s and their own.

Chief Human Resources Officer Colette Rückert-Hennen

Focusing on people:

The third dimension of the EnBW sustainability strategy is our commitment to society, our customers and our employees. This encompasses support for sports, education, youth development and climate protection. And during the coronavirus pandemic, we have made a donation to food banks in Baden-Württemberg (further information on our German-language website at www.enbw.com/engagement).

EnBW is responsible for more than 24,000 employees – its own and those of its subsidiaries. The company’s sense of responsibility is demonstrated in, for example, its high standards of occupational safety, especially in its power plants and grid operations.

We are confronting the challenges associated with the EnBW 2025 strategy with a human resources strategy that focuses on people.

Measures associated with the “social commitment” dimension of sustainability:

New HR strategy: “Focusing on people”

Just as it has so far in its restructuring activities, EnBW will be considering its employees throughout the future transformation associated with the coal phase-out. However, the focus of this strategy is on furthering employees’ personal development.

On course for growth

The growth course associated with the EnBW 2025 strategy will also be very evident in the number of jobs and apprenticeships offered by the company. In 2022 alone, EnBW will be recruiting 3,600 new employees.

Tailoring the working environment to individual needs

We are drawing on a range of experiences including the coronavirus pandemic to optimally tailor the working environment to our employees’ needs. Options range from home office solutions through preventive healthcare services to participation in designing the workplace of the future.

Young professionals

More than 1,000 young professionals are currently undertaking an apprenticeship or degree programme at EnBW.

Responsibility for migrants and refugees

Since 2016, 60 migrants and refugees have been given technical training.

A good corporate citizen

EnBW lives up to its corporate responsibility in many different ways. For example, it provides funding and sponsorship to many organisations throughout Germany, focusing especially on education, amateur sport and youth development.

Our course

We have been consistently remodelling and realigning the company since 2013. Before the Coal Phase-out Act even came into force, we had already voluntarily discontinued around 40 percent of our coal-fired generation. The company has transformed its portfolio of largely conventional power plants so that installed output will be generated in equal parts from thermal and renewable energies by 2025.

We are now continuing on this course with the measures that make up the extensive sustainability strategy decided in 2020. Our actions have been guided by sustainability requirements since the beginning. This is demonstrated by our considerable investment in, for example, renewable energies, electricity grids and electromobility, new jobs and apprenticeship places, as well as our intensive dialogue with our neighbours, the public and NGOs.

We will continue on this course with our strategic focus on critical infrastructure in order to play an increasingly important role and shoulder responsibility in the middle of our society. Consistent sustainability will therefore remain at the heart of our thoughts and actions beyond 2025.