《意昂集团(E.ON)2022年年度报告(英文版)(360页).pdf》由会员分享,可在线阅读,更多相关《意昂集团(E.ON)2022年年度报告(英文版)(360页).pdf(360页珍藏版)》请在三个皮匠报告上搜索。
1、 Taking action now Integrated Annual Report 2022 Contents Search Back 2 E.ON Integrated Annual Report 2022 We Connect Everyone To Good Energy building open energy ecosystems,and creating smart solutions that make sustainable energy choices easy,for everyone.Contents Search Back 3 E.ON Integrated Ann
2、ual Report 2022 Energy Networks Our distribution networks are the backbone of the new energy world.We are gradually developing them into intelligent platforms that control complex energy and data flows and provide customers with new options for dealing with energy.Without distribution networks there
3、 can be no energy transition and no climate protection.The expansion,modernization,and operation of distribution networks support security of supply and ensure the most efficient use of green electricity.This makes our networks the foundation of livable cities,communities,and regions.Customer Soluti
4、ons Our solutions help customers meet their personal energy needs and decarbonization goals.This includes energy sales,which offers a wide range of green electricity and green gas tariffs,as well as our solutions business,which provides innovative,sustainable,and digital products and services.Solar
5、power systems,eMobility,energy storage,sensible energy control,and solutions for sector integration enable our customers to reduce their costs and emissions and also to increase their comfort and quality of life.This applies equally to residential customers and small businesses as well as large comp
6、anies and municipalities.Europes energy system is becoming ever lower in CO2,more decentralized,and more digital.In short:more sustainable.Our two core businessesenergy networks and customer solutionsare playing a big role in making this happen.E.ON is one of Europes largest operators of energy netw
7、orks and energy infrastructure and providers of innovative customer solutions.The contribution of our roughly 72,000 employees is therefore crucial to successfully propelling the energy transition in Europe.About E.ON Contents Search Back 4 E.ON Integrated Annual Report 2022 Contents Business Highli
8、ghts 5 To Our Investors 14 Combined Group Management Report 27 Corporate Profile 31 Climate Protection and Environmental Management 42 Employees and Society 54 Governance 70 Sustainable Finance and Investment 82 Business Report 92 Forecast Report 123 Risks and Chances Report 125 Disclosures Pursuant
9、 to Section 289,Paragraph 4,and Section 315,Paragraph 4 of the German Commercial Code on the Internal Control System for the Accounting Process 134 Corporate Governance Declaration in Accordance with Section 289f and Section 315d of the German Commercial Code 138 Compensation Report 148 Consolidated
10、 Financial Statements 189 Consolidated Statement of Income 191 Consolidated Statement of Recognized Income and Expenses 192 Consolidated Balance Sheet 193 Consolidated Statements of Cash Flows 195 Statement of Changes in Equity 197 Notes 199 Other Information 306 Declaration of the Board of Manageme
11、nt 308 Independent auditors report 309 Independent Practitioners Report on Non-Financial Information 315 Boards 318 ESG Figures 324 Annexes to the Management Report 329 Sustainable Development Goals(“SDG”)Index 351 Sustainable Accounting Standards Board(“SASB”)Index 352 Financial Calendar and Imprin
12、t 360 Contents Search Back 5 E.ON Integrated Annual Report 2022 Business Highlights Europes energy markets markedly impacted in 2022 by the repercussions of the Russia-Ukraine war E.ON performed well amid the difficult market environment and surpassed its forecast,recording adjusted EBITDA of 8.1 bi
13、llion and adjusted earnings per share of 1.05 for the 2022 financial year Outlook for the 2023 financial year:adjusted EBITDA of between 7.8 and 8.0 billion,adjusted net income of between 2.3 and 2.5 billion anticipated Dividend of 0.51 per share proposed for the 2022 financial year;this corresponds
14、 to a 4 percent increase relative to the prior year Interest-rate environment has positive effect on pension liabilities;debt factor at year-end 2022 significantly below the previous forecast range of 4.8 to 5.2 Contents Search Back 6 E.ON Integrated Annual Report 2022 How We Create Value The follow
15、ing overview uses examples and relevant data to show how we create value for our stakeholders.The three key elements of E.ONs strategysustainability,digitalization,and growthare the centerpiece of our business model and deeply embedded in the way we think,work,and impact peoples lives.This overview
16、is guided by the International Integrated Reporting Councils(“IIRC”)framework.Contents Search Back 7 E.ON Integrated Annual Report 2022 How We Make an Impact Contents Search Back 8 E.ON Integrated Annual Report 2022 Key Performance Indicators Financial Contents Search Back 9 E.ON Integrated Annual R
17、eport 2022 Key Performance Indicators Sustainability Contents Search Back 10 E.ON Integrated Annual Report 2022 Key Performance Indicators Energy Networks Contents Search Back 11 E.ON Integrated Annual Report 2022 Key Performance Indicators Customer Solutions Contents Search Back 12 E.ON Integrated
18、Annual Report 2022 Key Figures of the E.ON Group Financial 1Adjusted for non-operating effects.2This figure is again the same as the asset-retirement obligations shown in the Consolidated Balance Sheets.The figure at December 31,2021 is calculated in part based on the actual amount of E.ONs obligati
19、ons and therefore differs from the balance-sheet amount.3Change in percentage points.4Attributable to shareholders of E.ON SE.5Based on shares outstanding(weighted average).6For the respective financial year;the 2022 figure represents managements dividend proposal.Financial Figures in millions 2022
20、2021 +/-%Sales 115,660 77,358 50 Adjusted EBITDA from core business1 6,975 6,272 11 Adjusted EBITDA1 8,059 7,889 2 Regulated business(%)66 61 8 Quasi-regulated and long-term contracted business(%)4 5 -20 Merchant business(%)30 34 -12 Adjusted EBIT1 5,197 4,723 10 Net income/loss 2,242 5,305 -58 Net
21、income/loss attributable to shareholders of E.ON SE 1,831 4,691 -61 Adjusted net income1 2,728 2,503 9 Investments 4,753 4,762 0 Cash provided by operating activities 10,045 4,069 147 Cash provided by operating activities before interest and taxes 11,511 5,639 104 Economic net debt(at year-end)2 32,
22、742 38,773 -16 Debt factor2 4.1 4.9 -17 Credit rating S&P BBB BBB Credit rating Moodys Baa2 Baa2 Credit rating Fitch BBB+Average capital employed 58,760 60,911 -4 Equity 21,867 17,889 22 Total assets 134,009 119,759 12 Cash Conversion Rate(%)151 80 89 3 ROCE(%)8.8 7.8 13 3 Earnings per share4,5()0.7
23、0 1.80 -61 Adjusted net income per share4,5()1.05 0.96 9 Dividend per share6()0.51 0.49 4 Divided payout 1,331 1,278 4 Contents Search Back 13 E.ON Integrated Annual Report 2022 Key Figures of the E.ON Group Sustainability 1Proportion of taxonomy-aligned capex,opex,and sales relative to taxonomy-eli
24、gible activities.2This KPI quantifies the avoided emissions that contribute to a low-carbon economy in connection with our customers,assets,and solutions.3The proportion of renewables capacity calculated as a percentage of the total sum of all installed generating capacity.4Number of employees does
25、not include apprentices,work-study students,or interns.5Serious incidents and fatalities(SIF)among employees:safety incidents per million hours of work.6Lost time injury frequency(LTIF)measures work-related accidents resulting in lost time per million hours of work.7Average number of formal trainig
26、hours per employee per year.8System average interruption duration index(SAIDI)for power.Figures refer to the respective prior year:2022 to 2021,2021 to 2020 9Refers to shareholder representatives.Sustainability Figures 2022 2021 Environment CO2 emissions:Scope 1(millions of metric tons)2.88 3.71 Sco
27、pe 2(millions of metric tons)(location-based)3.38 3.90 Scope 3(millions of metric tons)(market-based)82.58 103.58 EU taxonomy aligned capex(%)1 98 97 EU taxonomy aligned opex(%)1 97 98 EU taxonomy aligned sales(%)1 97 99 Avoided CO2 emissions together with our customers(millions of metric tons)2 108
28、 107 Share of renewable generation plants connected to E.ONs power grid(%)3 85 78 Ecological network corridor management(%)8 11 Number of smart energy meter installations(thousands)12,178 9,654 Number of charging points sold by E.ON 20,417 n.a.Green power as a proportion of total power sales(%)44 33
29、 Social Employees of the E.ON Group(at year-end)4 71,613 72,169 Proportion of women(%)31 32 Average age of employees 42 42 Serious incidents and fatalities(SIF)among employees5 0.04 0.09 Lost time injury frequency(LTIF)among employees6 2.1 2.1 Proportion of women executives(%)23 21 People developmen
30、t(hours per employee)7 18.2 14.7 System average interruption duration index(SAIDI)(minutes)8 Germany 24 22 Sweden 121 116 Czech Republic 451 182 Community contribution(in millions)18 12 Volunteer activities of E.ON employees(number of volunteer hours)13,340 8,506 Governance Proportion of women on th
31、e Supervisory Board(%)9 30 30 Proportion of independent Supervisory Board members(%)100 100 ESG targets included in Management Board compensationfrom 2022 onwards Nein Contents Search Back 14 E.ON Integrated Annual Report 2022 To Our Investors Three Good Reasons to Invest in E.ON Stock Dividend Grow
32、th Our stable and forward-looking business portfolio is the foundation for sustainable dividend growth.Sustainability Our objective is a climate-neutral society.Our enormous investments in a sustainable energy system are helping get there.Energy transition accelerator We are driving the green energy
33、 transition through digitalization and innovation.This is essential for a more renewable and secure energy system.To Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Supervisory Board 15 E.ON Integrated Annual Report 2022 To Our Investors E.ON on the Capital Mar
34、ket Russia-Ukraine War and Energy Crisis Affect Capital Markets E.ON stocks value performance at the end of 2022 had declined by about 23 percent relative to its year-end closing price for 2021,thereby underperforming the DAX index of blue-chip German stocks(-12 percent)and also its European peer in
35、dex,the Euro Stoxx 600 Utilities(-11 percent).E.ON stock closed 2022 at a price of 9.33 compared with 12.19 at year-end 2021.The Russia-Ukraine war as well as the energy crisis,which affected the German energy sector in particular(the chapter entitled“Macroeconomic and Industry Environment”contains
36、more information),had a significant impact on the performance of European and German stocks in 2022.E.ON stock was exposed to even greater volatility than its peers and did not stabilize itself until the fourth quarter of 2022.Continuous Dividend Growth At the 2022 Annual Shareholders Meeting on May
37、 17,2023,the Management Board and Supervisory Board will propose paying out a cash dividend of 0.51 per share for the 2022 financial year(prior year:0.49).Based on E.ON stocks year-end 2022 closing price,the dividend yield is 5 percent.The payout ratio(as a percentage of adjusted net income)is 49 pe
38、rcent.Our dividend policy aims to offer our shareholders attractive dividend growth of up to 5 percent annually.To Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Supervisory Board 16 E.ON Integrated Annual Report 2022 Broad International Investor Base The most
39、 recent survey at year-end 2022 shows that E.ON stock has roughly 60 percent institutional investors,roughly 21 percent retail investors,and about 19 percent other investors.Investors in Germany hold about 42 percent of E.ON stock,those outside Germany about 58 percent.E.ON Stock Is Represented on N
40、umerous Stock Exchanges and in a Variety of Indices E.ON stock trades in Frankfurt am Main and on other German stock exchanges as well as via electronic trading platforms such as Xetra.It is also available on stock exchanges in other European countries.E.ON stock is included in the DAX and other ind
41、ices in Europe,such as the Euro Stoxx 600 Utilities,MSCI World,and the S&P Europe 350.E.ON stock trades over the counter on OTC Pink in the United States in the form of American depositary receipts(“ADRs”).E.ONs ADR program offers U.S.investors the opportunity to acquire E.ON stock and hold it in th
42、e form of share certificates that are traded and settled like other U.S.stocks.Analyst Estimates E.ON stock is rated by a large number of financial analysts from various investment banks and brokerage houses.The current recommendations can be viewed at Stock Key Figures Per share()2022 2021 Dividend
43、1 0.51 0.49 Dividend payout1(in millions)1,331 1,278 Twelve-month high2 12.38 12.28 Twelve-month low2 7.41 8.27 Year-end closing price2 9.33 12.19 Market capitalization3(in billions)24.60 32.20 1For the respective financial year;the 2022 figure represents managements dividend proposal.2Source:NASDAQ
44、 3Based on ordinary shares outstanding at year-end.To Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Supervisory Board 17 E.ON Integrated Annual Report 2022 Ongoing Investor Communications Despite Covid-19 Restrictions Our investor relations continue to be fou
45、nded on four principles:openness,continuity,credibility,and equal treatment of all our investors.Our mission is to provide prompt,precise,and relevant information at our periodic conferences and road shows worldwidebecause maintaining regular communications and relationships is essential for good in
46、vestor relations.The subsiding of the Covid-19 pandemic enabled us to carry out a significant part of our investor relations activities in 2022 in person.We will adopt a hybrid approach of virtual and in-person activities in the future.This will help us communicate with capital markets efficiently a
47、nd purposefully and meet our investors needs.Expansion of Financing Sources and Flexibility Debt capital represents an important financing source for the E.ON Group.That is why we focus on satisfying the demands of creditors as well as those of shareholders.During the year under review,E.ON decided
48、to commission Fitch Ratings to assess its creditworthiness to supplement the credit ratings of Standard&Poors and Moodys.E.ON believes that another commissioned rating will provide debt investors with additional visibility and confidence in E.ONs creditworthiness and thus support its competitiveness
49、 for future financing activities.Fitch rates E.ONs corporate credit risk at BBB+with a stable outlook and its bonds at A-.E.ON aims to maximize the diversity of its investor base to ensure that it has cost-optimized access to a variety of funding sources at all times.In 2022 E.ON therefore began to
50、issue bonds denominated in other currencies as well.In addition to euro-denominated corporate bonds totaling 3.4 billion,E.ON made a private placement in Norwegian kroner(“NOK”)in 2022 equal to around 150 million and issued two bonds in Swiss francs(“CHF”)equal to about 306 million.Despite a difficu
51、lt capital market environment,these issuances allowed to secure around 1 billion in pre-financing for the financial year 2023.E.ON has a 10 billion Commercial Paper(“CP“)program and a$10 billion CP program,under which it can issue short-term notes.After years of inactivity,the U.S.dollar CP program
52、was renewed in 2022 and has since then been utilized again.Financial Framework for Sustainable Funding Sustainability aspects play an increasingly important role in many international investors decision for or against a particular investment.In 2021 E.ON became the first company to fully align its G
53、reen Bond Framework,under which it issues debt instruments whose issuance proceeds fund sustainable investment projects,not only with the ICMA Green Bond Principles but also with the EU Taxonomy.The EU Taxonomy Regulation defines which economic activities are classified as environmentally sustainabl
54、e,thereby setting a Europe-wide standard for sustainable investment.E.ON generally intends to cover more than 50 percent of its annual financing requirements with green bonds.Accordingly,green bonds accounted for about 60 percent of total bond financing of just under 3.9 billion in 2022.We provide d
55、etailed information on the topic of financing in the“Financial Situation”chapter.E.ON Stock Symbols and Identification Numbers Reuters:Xetra EONGn.DE Reuters:Frankfurt Stock Exchange EONGn.F Bloomberg:Frankfurt Stock Exchange EOAN GY Bloomberg:ADR over-the-counter code EOANGY US Security Identificat
56、ion Numbers Germany ENAG99 International Securities Identification Number(ISIN)DE000ENAG999 Contents Search Back 18 E.ON Integrated Annual Report 2022 The E.ON Management Board From left to right:Marc Spieker Chief Financial Officer Victoria Ossadnik Chief Operating Officer Digital Leonhard Birnbaum
57、 Chief Executive Officer Thomas Knig Chief Operating Officer Networks Patrick Lammers Chief Operating Officer Commercial The Management Board manages the Companys business,with all its members bearing joint responsibility.It determines E.ONs corporate objectives,fundamental strategic course,corporat
58、e policy,and organizational setup.To Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Supervisory Board 19 E.ON Integrated Annual Report 2022 CEO Letter Leonhard Birnbaum Management Board Chairman and CEO Dear Shareholders and Friends of E.ON,In the current ener
59、gy crisis E.ON is once again demonstrating responsibility:for our customers,for society,and for all of Europe.And although one would never hope for such a crisis,crises always create opportunities as well.The opportunity for our company is an even faster energy transition and thus the affirmation of
60、 our strategy.The previous 12 months were a challenge in every respect,the likes of which even I havent experienced in 20 years in the energy industry.Energy import bottlenecks,rising wholesale prices,interventionist policieswe were confronted with a variety of situations that we wouldnt have consid
61、ered remotely possible before the energy crisis.Two key issues for society have always been at the forefront:energy security and energy affordability.One thing has now become clear:E.ONthe reliable operation of our critical energy infrastructure and our portfolio of customer solutionshas definitely
62、become even more relevant.Many correct and necessary policy decisions were made in 2022,in Germany and at the European level.We at E.ON got a lot right too and worked for our customers every day.Were much more resilient today than we were just a few months ago.We were able to successfully tackle the
63、 energy crisis and manage risks,particularly in our sales business,and are in a better position than before.Currently theres no better owner for this business than E.ON.This benefits you as shareholders too:Im pleased to report that we fully met and in some cases surpassed our financial targets for
64、2022.In addition,we made great progress with the Groups debt situation.Were delivering on our dividend promise as well:at the Annual Shareholders Meeting in May,the Management Board and Supervisory Board will propose a dividend of 51 cents per share.This is the eighth dividend increase in a row.Now
65、2023 must also be a year of correct and courageous decisions to do better in the short term and to achieve social goals in the long term as part of the energy transition.What needs to be done to achieve this?To Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Su
66、pervisory Board 20 E.ON Integrated Annual Report 2022 I have three messages for you:First,Europe must not lull itself into a false sense of(energy)security.We must continue to conserve energy,because the crisis isnt yet past.The race to get through this winter is over,but we need to prepare well for
67、 next winter.Wholesale gas prices have now fallen.Although this is a good sign,it isnt yet a reason to sound the all-clear.Prices are still at levels we wouldve considered unthinkable just a few years ago.Moreover,prices remain volatile.Nobody knows how prices will develop in the weeks and months ah
68、ead.Thats why now,amid the crisis,we need to lay the groundwork and make the right decisions.Second,weby that I mean energy companies,national and European energy policy,and European industrial policymust continue to work at getting better.The prosperity of Europe,and Germany in particular,is curren
69、tly at stake.The energy crisis is changing our competitivenessstructurally and permanentlyrelative to other regions of the world.In the long term,we in the energy industry need to offset the structural supply shortfall by tapping new sources,such as more renewables and hydrogen.In the short term,we
70、need a lot of LNG too.In addition,we need to dramatically accelerate the energy transition.2023 must bring new impetus for investments in renewables,energy networks,and hydrogen.And above all for the right regulatory incentives so that investments in energy infrastructure in particular are worthwhil
71、e again.Policymakers and regulators in Germany must also finally get serious about reducing bureaucracy and ending the countrys parochial approach to planning so that the necessary network expansion can succeed and renewables can really take off.E.ON is making a significant contribution to this by e
72、xpanding its energy distribution networks.About 15 percent of renewable energy in Europeand fully two-thirds in Germanyis connected to our networks.We already operate 800,000 kilometers of distribution networks in Germany alone.That would be enough to circle the earth 20 times.But the challenge is e
73、normous:to meet the targets we will have to double the distribution networks by 2030.E.ON,for one,is ready to invest.We invested just under 4 billion to expand and digitalize our networks in 2022.And were prepared to invest 26 billion more across Europe through 2027 to expand our network infrastruct
74、ure.But to fully implement this ambitious plan,we first need the right investment conditions.Because,third,now is the time to invest out of the crisis.Successful decarbonization will require massive investments in renewable and low-carbon energy,but,most importantly,in robust and digital energy netw
75、orks.Why am I so sure about this?Because over the past three years the demand for new network connections has risen exponentially.This is due not just to new wind and solar facilities,but also to increasing electric-vehicle registrations and the rapidly growing demand in the heating sector for elect
76、ric heating or cooling systems.All these issues will create immense growth opportunities for our business if we tackle them even faster now.This will require effective investment incentives for international investors to propel the green transformation.All the more so now that our company is operati
77、ng in an environment of higher interest rates on capital markets,something that so far isnt inadequately reflected in the regulatory scheme.As E.ON CEO,Im pushing for improvements in this area as well in order to accelerate the pace of establishing infrastructure for sustainable energy.This infrastr
78、ucture is needed now more urgently than ever.To Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Supervisory Board 21 E.ON Integrated Annual Report 2022 What can you expect from E.ON in 2023 and beyond?In 2023 E.ON will again do all it can to transform the energ
79、y sector.Our strategy and our focus on growth,sustainability,and digitalization put us in precisely the right position to do so.Thats why well be successful in 2023 as well.The current year will lay an important foundation for our accelerated investment program of around 33 billion over the next fiv
80、e years.We intend for these investments to enable us to achieve a further increase in earnings over the same period and now plan for earnings per share(based on adjusted net income)of about 97 cents in 2027.Our new debt factor target of 5.0 is also intended to reflect our confidence in E.ONs financi
81、al strength.Last year once again demonstrated clearly that the current opportunities for our entire business model are greater than ever,and now we have a unique opportunity to seize them for our benefit.This underlines E.ONs strong position,and I look forward to working with our Management Board te
82、am and employeesand above all with you:our customers,business partners,and investorsto successfully achieve these ambitious objectives.Leo BirnbaumTo Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Supervisory Board 22 E.ON Integrated Annual Report 2022 Report
83、of the Supervisory Board Karl-Ludwig Kley Chairman of the Supervisory Board Dear Shareholders,2022 was a particularly challenging year for E.ON.Russias war of aggression has lastingly altered Europes previous type of energy supply and therefore posed major challenges for the Company.Enormous operati
84、onal challenges resulting from extremely volatile prices in a continually evolving regulatory environment had to be swiftly overcome to ensure an uninterrupted supply for our customers.The Supervisory Board would like to thank the Management Board and all employees for their special efforts in carry
85、ing out the Companys mission.In the 2022 financial year the Supervisory Board carefully performed all its duties and obligations under law,the Companys Articles of Association,and its own rules and procedures.It advised the Management Board in detail about the Companys management and continually mon
86、itored the Management Boards activities,assuring itself that the Companys management was legal,purposeful,and orderly.At four regular meetings it addressed all issues relevant to the Company.In addition,it carried out two written resolution procedures.On a regular basis,the shareholder representativ
87、es and employee representatives made separate preparations for these meetings with the participation of one or several members of the Management Board.All members of the Supervisory Board attended all meetings.The Management Board regularly provided the Supervisory Board with timely and comprehensiv
88、e information about significant business transactions in both written and oral form.At the meetings of the full Supervisory Board and its committees,the Supervisory Board had sufficient opportunity to actively discuss the Management Boards reports,motions,and proposed resolutions.After thoroughly ex
89、amining and discussing the resolutions proposed by the Management Board,the Supervisory Board voted on them when it was required by law,the Companys Articles of Association,or the Supervisory Boards rules and procedures.Furthermore,the Supervisory Board also met on a recurring basis without the Mana
90、gement Board being present.In addition,there was a regular exchange of information between the Chairman of the Supervisory Board and the members of the Management Board,in particular the Chairman,during the entire financial year.In the case of particularly pertinent issues,the Chairman of the Superv
91、isory Board was kept informed at all times.He likewise maintained contact with the members of the Supervisory Board outside of board meetings.To Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Supervisory Board 23 E.ON Integrated Annual Report 2022 All meetings
92、 of the Supervisory Board and its committees took place in person.Members of the Supervisory Board unable to attend in person were given the opportunity to attend by means of video conference.This was made use of in some instances.Management of the Energy Crisis and Strategy Review The Supervisory B
93、oard closely monitored the management of the challenges posed to the Company by the energy crisis against the backdrop of Russias war of aggression.It was informed by the Management Board on an ongoing basis about the crisiss implications for the Company and provided the Management Board with detail
94、ed advice.The same applies to the strategys refinement and implementation.Key Topics of the Supervisory Boards Discussions Crisis-driven policy and regulatory interventions in countries in which E.ON is active constituted a key topic of the Supervisory Boards discussions.In the case of Germany,these
95、 were in particular the planned gas levy,the electricity and gas price caps,and the decisions on the temporary continued operation of Isar 2 nuclear power station.Government intervention in pricing,which was in some cases extensive,especially in Romania,was the subject of deliberations as well.In th
96、e context of the Groups operating business,the Supervisory Board addressed at length the impact of dramatically higher commodity prices on E.ON,the business situation of the Group and its companies,national and international energy markets,as well as the currencies that are important to E.ON.It disc
97、ussed E.ON SEs and the E.ON Groups asset,financial,and earnings situation,dividend policy,workforce developments,and earnings opportunities and risks.The Supervisory Board and the Management Board thoroughly discussed the E.ON Groups medium-term plan for 2023 to 2025.The Supervisory Board was provid
98、ed with information on a regular basis about the Companys cybersecurity,health,(occupational)safety,and environmental performance(in particular,key accident indicators)as well as current customer numbers,customer satisfaction,and the number of apprentices.Overview of the Attendance of Supervisory Bo
99、ard Members at Meetings of the Supervisory Board and Its Committees Supervisory Board members Supervisory Board Executive Committee Audit and Risk Committee Innovation and Sustainability Committee Nomination Committee Kley,Karl-Ludwig 4/4 6/6 -*Clementi,Erich 4/4 6/6 -1/3*Dybeck Happe,Carolina(until
100、 June 30,2022)2/4 -Frhlich,Klaus 4/4 -3/3 -Grillo,Ulrich 4/4 6/6 4/4 -Groth,Anke(since July 1,2022)2/4 -2/4*-Schmitz,Andreas 4/4 2/6*4/4 -Schmitz,Rolf Martin 4/4 -Segundo,Karen de 4/4 -2/3 *Wilkens,Deborah 4/4 -4/4 3/3*-Woste,Ewald 4/4 -3/3 -Schmitz,Christoph 4/4 6/6 -Bauer,Katja(since April 1,2022)
101、3/4 -Krebber,Monika(until March 31,2022)1/4 -1/3*-Luha,Eugen-Gheorghe 4/4 -3/3 -May,Stefan 4/4 -3/3 -Pelouch,Miroslav 4/4 -2/3*-Pinczsn Mrton,Szilvia 4/4 -Phls,Ren 4/4 -4/4 -Schulz,Fred 4/4 6/6 4/4 -Wallbaum,Elisabeth 4/4 -4/4 -Zettl,Albert 4/4 6/6 -*Participation(s)as a guest.*Committee member unti
102、l March 31,2022.*Committee member since May 11,2022.*A written circular resolution and ongoing consultations outside formal meetings on the election of new Supervisory Board members in 2023.To Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Supervisory Board 24
103、 E.ON Integrated Annual Report 2022 Corporate Governance In the declaration of compliance issued at the end of the year,the Supervisory Board and the Management Board declared that E.ON was in full compliance with the recommendations of the“Government Commission German Corporate Governance Code”date
104、d December 16,2019,published by the Federal Ministry of Justice and Consumer Protection in the official section of the Federal Gazette(Bundesanzeiger)on March 20,2020,since the last declaration in December 2021.The Supervisory Board and the Management Board also declared that E.ON has been in full c
105、ompliance with the recommendations of the“Government Commission German Corporate Governance Code”dated April 28,2022,published by the Federal Ministry of Justice and Consumer Protection in the official section of the Federal Gazette(Bundesanzeiger)on June 27,2022.The current version of the declarati
106、on of compliance as well as earlier versions are published on the Internet at .In early 2023 the Supervisory Board Chairman held discussions with investors on topics specific to the Supervisory Board at a corporate governance roadshow.The Supervisory Board is aware of no indications of conflicts of
107、interest involving members of the Supervisory Board in the 2022 financial year.Education and training sessions on selected issues of E.ONs business were conducted for Supervisory Board members in the 2022 financial year.The Supervisory Board was given a practical explanation of the effects of,and de
108、fense against,a cyberattack during a visit to the Cyber Range.In addition,the Supervisory Board was informed about current trends in corporate governance and their implications for E.ON.At another event,the main developments and progress in the major digitalization projects at the network business w
109、ere presented.The Dutch customer solutions business was described in detail at a meeting held in the Netherlands.Finally,the challenges arising from demographic developments on the labor market were the subject of another event.The targets for the Supervisory Boards composition,including a competenc
110、y profile and a diversity concept,with regard to Recommendation C.1 of the German Corporate Governance Code and Section 289f,Paragraph 2,Item 6 of the German Commercial Code and the status of the implementation of the competency profile in the form of a qualifications matrix are available in the Cor
111、porate Governance Declaration.Committee Work To fulfill its duties carefully and efficiently,the Supervisory Board has created committees.The Executive Committee held four regular and two extraordinary meetings in the 2022 financial year.All members took part in all of the committees meetings.In add
112、ition,the Chairman of the Audit and Risk Committee attended both extraordinary meetings.At its meetings,the committee,in particular,addressed current developments in conjunction with the energy crisis as well as policy and regulatory changes.Additionally,the Executive Committee dealt with the Manage
113、ment Boards compensation,including the achievement of Management Board targets for 2022 and the setting of the targets for 2023.Furthermore,the Executive Committee thoroughly discussed the strategy review.Finally,the Executive Committee approved an investment project in Turkey.The Innovation and Sus
114、tainability Committee met three times.One member was unable to attend one meeting.Apart from that,all members attended all of the committees meetings.The matters addressed by the committee included the progress and specific initiatives in the area of innovation as well as E.ONs position in sustainab
115、ility rankings and the external perception of E.ON with regard to sustainability.The further development of the eMobility business was the topic of extensive discussions as well.The Audit and Risk Committee met four times in 2022.All members attended all meetings.The committee conducted a thorough r
116、eview,in particular of the 2021 Financial Statements of E.ON SE(prepared in accordance with the German Commercial Code),the E.ON Groups 2021 Consolidated Financial Statements(prepared in accordance with International Financial Reporting Standards,or“IFRS”),and the 2022 intermediate financial reports
117、 of E.ON SE.The committee discussed the recommendation for selecting an independent auditor for the 2022 financial year as well as the intermediate financial reports and assigned the tasks for the independent auditors auditing services,established the audit priorities,determined the independent audi
118、tors compensation and reviewed the independent auditors qualifications as well as the quality of the independent audit,and verified the auditors qualifications and independence in accordance with the requirements of the law and the German Corporate Governance Code.The committee also assured itself t
119、hat the independent auditor has no conflicts of interest.In addition,the committee addressed other matters assigned to it by law,the Companys Articles of Association,or the Supervisory Boards rules and procedures,in particular Internal Audits activities and reports,accounting issues,risk management,
120、transactions with related parties,and developments in the area of compliance.Furthermore,the committee thoroughly discussed the Combined Group Management Report and the proposal for profit appropriation and To Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Sup
121、ervisory Board 25 E.ON Integrated Annual Report 2022 prepared the relevant recommendations for the Supervisory Board and reported them to the Supervisory Board.On the basis of the quarterly risk reports,the committee noted that no risks were identified that might jeopardize the existence of the Grou
122、p or individual segments.Furthermore,the committee addressed in detail the implications and the management of the energy crisis,occupational safety,and the Companys cyber,legal,and data-protection risks.In addition,there was a regular exchange of information between the Chairman of the Audit and Ris
123、k Committee and the independent auditor throughout the financial year.The Nomination Committee conducted a formal written resolution procedure in July 2022 regarding the court appointment of Anke Groth to the Supervisory Board.In addition,the Chairman of the Nomination Committee made detailed prepar
124、ations for the reorganization of the Supervisory Board in 2023.For this purpose,he and the committee members held discussions with potential candidates.He also discussed issues relating to the Supervisory Boards future size and composition in the Executive Committee and with shareholder representati
125、ves.The members of the Nomination Committee also consulted in various groups on the sidelines of Supervisory Board meetings.The Chairman of the Nomination Committee informed the Supervisory Board on an ongoing basis regarding the status of deliberations on the upcoming new election.At a meeting in F
126、ebruary 2023,the Nomination Committee adopted the final election proposals for the Annual Shareholders Meeting.Committee chairpersons reported the agenda and results of their respective committees meetings to the full Supervisory Board on a regular basis.Information about the committees composition
127、and responsibilities is in the Corporate Governance Declaration.Examination and Approval of the Financial Statements,Approval of the Consolidated Financial Statements,Proposal for Profit Appropriation for the Year Ended December 31,2022 KPMG AG,Wirtschaftsprfungsgesellschaft,Dsseldorf(“KPMG”),audite
128、d and submitted an unqualified auditors and/or audit opinion on the Consolidated Financial Statements of E.ON SE prepared in accordance with IFRS,the Combined Group Management Report,and the Compensation Report pursuant to Section 162 of the German Stock Corporation Act(“AktG”)for the year ended Dec
129、ember 31,2022.The IFRS Consolidated Financial Statements exempt E.ON SE from the requirement to publish Consolidated Financial Statements in accordance with German law.The Supervisory Board reviewed and,at its annual-results meeting on March 14,2023,thoroughly discussedin the presence of the indepen
130、dent auditor and with knowledge of,and reference to,the Independent Auditors Report and the results of the preliminary review by the Audit and Risk CommitteeE.ON SEs Financial Statements prepared in accordance with the German Commercial Code,Consolidated Financial Statements,and Combined Group Manag
131、ement Report as well as the Management Boards proposal for profit appropriation.The independent auditor was available for supplementary questions and answers.After concluding its own examination,the Supervisory Board determined that there are no objections to the findings.It therefore acknowledged a
132、nd approved the Independent Auditors Report.The Supervisory Board also examined the sustainability reporting consisting of the combined Non-Financial Statement and additional sustainability information which is integrated into the Combined Group Management Report.KPMG also audited the Non-Financial
133、Statement and selected additional sustainability information and issued an unqualified opinion.The disclosures were subjected to a limited assurance engagement by KPMG;selected disclosures were audited with reasonable assurance.Following the final result of its examination,the Supervisory Board rais
134、ed no objections to the integrated sustainability reporting,including the Non-Financial Statement.On March 14,2023,the Supervisory Board approved the Financial Statements of E.ON SE prepared by the Management Board and the Consolidated Financial Statements.The Financial Statements are thus adopted.T
135、he Supervisory Board agrees with the Combined Group Management Report and,in particular,with its statements concerning the Companys future development.The Supervisory Board examined the Management Boards proposal for profit appropriation,which includes a cash dividend of 0.51 per ordinary share,also
136、 taking into consideration the Companys liquidity and its finance and investment plans.After examining and weighing all arguments,the Supervisory Board agrees with the Management Boards proposal for profit appropriation.To Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Repo
137、rt of the Supervisory Board 26 E.ON Integrated Annual Report 2022 Personnel Changes on the Supervisory Board Katja Bauer was appointed to the Supervisory Board effective April 1,2022.She succeeded Monika Krebber on the employee side,who retired from the Company effective June 30,2022.Effective July
138、1,2022,the Essen District Court appointed Anke Groth as the successor of Carolina Dybeck-Happe,who ended her service effective June 30,2022.Finally,at the end of the year Axel Winterwerber succeeded Albert Zettl,who was appointed a member of the Bayernwerk AGs Management Board effective January 1,20
139、23.Klaus Frhlich succeeded Karen de Segundo as Chair of the Innovation and Sustainability Committee effective May 11,2022.In addition,likewise on May 11,2022,Miroslav Pelouch was elected to succeed Monika Krebber on this committee.Pages 318 and 319 of the Integrated Annual Report provide an overview
140、 of all members of the Supervisory Board.Personal Remarks Permit me to conclude with a few personal remarks:This is my last shareholder letter for E.ON.I have had the privilege of leading the Supervisory Board of this outstanding company for more than seven years.We took on and accomplished a lot in
141、 those seven years:the Groups separation into E.ON and Uniper,the reorganization of E.ON,the sale of E.ONs Uniper stake to Fortum,the acquisition and integration of innogy,the appointment of Leonhard Birnbaum to succeed Johannes Teyssen as the new Chairman of the Management Board,the navigation of t
142、he Company through the Covid-19 pandemic,and the multi-faceted measures to tackle the current crisis.No,it was never dull.There was hardly any time to catch ones breath.But what remains is a sense of satisfaction about all the things that we shaped together during this time.Our equity stood at 1.3 b
143、illion in 2016 and at 21.9 billion in 2022.We recorded adjusted net income of 0.9 billion in 2016 and 2.7 billion in 2022.We paid out a dividend of 0.27 per share for the 2016 financial year and are proposing a dividend of 0.51 per share for the 2022 financial year.Today,E.ON is again in good shape.
144、Our solid finances have laid the foundation for future growth.Bring on the future.I thank the shareholders who placed their trust in me to share responsibility for E.ONs transformation process over the past seven years.I would like to thank my Supervisory Board colleagues for their very trusting and
145、 extremely constructive collaboration,which was always focused on the matter at hand.I thank the Management Board for its decisive and successful management of the Company and the excellent and trustful collaboration with the Supervisory Board and me personally.And,on behalf of the entire Supervisor
146、y Board,I also express my thanks to all E.ON employees.You have done a great job.I wish you all the best,every imaginable success,and hopefully a little more time to catch your breath.Essen,March 14,2023 The Supervisory Board Best wishes,Karl-Ludwig Kley Chairman Contents Search Back 27 E.ON Integra
147、ted Annual Report 2022 Combined Group Management Report Contents Search Back 28 E.ON Integrated Annual Report 2022 Corporate Profile 31 Business Model 31 ESG Materiality and Stakeholder Engagement 31 Climate Protection and Environmental Management 42 Climate Protection 42 Environmental Management 48
148、 Employees and Society 54 Occupational Health and Safety 54 Working Conditions and Employee Development 59 Customer Satisfaction 63 Community Involvement 65 Data Protection,Cybersecurity,and Product Safety 66 Business Resilience Management 68 Governance 70 Compliance and Anti-corruption 70 Energy Af
149、fordability 72 Human Rights and Supply Chain Management 76 Tax 80 Sustainable Finance and Investment 82 EU Taxonomy 82 Sustainable Finance 90 ESG Ratings 91 ESG Asset Management and Pension Assets 91 Business Report 92 Macroeconomic and Industry Environment 92 Special Events in the Reporting Period
150、97 Subsequent Events 99 Business Performance 99 Earnings Situation 100 Financial Situation 105 Asset Situation 109 Energy Networks 110 Security of Supply 112 Customer Solutions 115 Sustainable Products and Services 117 Non-Core Business 120 E.ON SEs Earnings,Financial,and Asset Situation 121 Forecas
151、t Report 123 Risks and Chances Report 125 Disclosures Pursuant to Section 289,Paragraph 4,and Section 315,Paragraph 4 of the German Commercial Code on the Internal Control System for the Accounting Process 134 Corporate Governance Declaration in Accordance with Section 289f and Section 315d of the G
152、erman Commercial Code 138 Combined Group Management Report Contents Search Back About this Report Corporate Profile Climate Protection and Environmental Management Employees and Society Governance Sustainable Finance Business Report Forecast Report Risks and Chances Report Internal Control System Di
153、sclosures Regarding Takeovers Corporate Governance Declaration 29 E.ON Integrated Annual Report 2022 About this Report GRI 2-1,GRI 2-2,GRI 2-3,GRI 2-4,GRI 2-5,GRI 2-6 The E.ON Integrated Annual Report 2022 for the first time combines the Companys financial and non-financial reporting.Sustainability
154、is the centerpiece of E.ONs strategy andin every dimensionthe standard for our actions.An integrated report provides our stakeholders with a holistic and transparent view of our financial,environmental,and social performance.Standards This integrated report applies to the E.ON Group as well as E.ON
155、SE.E.ON is therefore fulfilling all requirements of International Financial Reporting Standards(“IFRS”),the German Commercial Code(German abbreviation:“HGB”),and German Accounting Standards(German abbreviation“DRS”).The combined Non-Financial Statement(“NFS”)pursuant to Section 315b and 315c in conj
156、unction with Sections 289b to 289e of the HGB is fully integrated into the Combined Group Management Report.The Group Management Report thus contains information on five aspects:the environment,employees,social matters,human rights,as well as anti-corruption and anti-bribery.The NFS also complies wi
157、th the disclosure requirements of the EU Taxonomy Regulation.The Non-Financial Statement(“NFS”)Index indicates where these disclosures can be found in the integrated report.Other parts of the Combined Group Management Report include Disclosures Regarding Takeovers and the Corporate Governance Declar
158、ation.In addition,the Compensation Report is integrated into the Annual Report.E.ONs sustainability reporting,which consists of the NFS and other sustainability disclosures,is guided by the findings of its materiality analysis and topics relevant for stakeholders.It has been prepared with reference
159、to the GRI Standards 2021 by the Global Reporting Initiative.The GRI standards covered by the content of a chapter are displayed on the first page of the chapter.The GRI Index provides an overview.The Other Information chapter contains E.ONs disclosures regarding the Electric Utilities and Power Gen
160、erators Standards issued by the Sustainability Accounting Standards Board(“SASB”).E.ON is committed to the ten principles of the United Nations Global Compact(“UNGC”)and supports the United Nations Sustainable Development Goals(“SDGs”).We describe our contributions to the SDGs in the Strategy chapte
161、r.Our climate-related reporting,which is based on the recommendations of the Task Force on Climate-related Financial Disclosures(“TCFD”)as well,can be found in the chapter Other Information.Scope This report encompasses all subsidiaries that are fully consolidated in E.ONs Consolidated Financial Sta
162、tements 2022.Any deviations are marked accordingly.KPI-based thresholds are used to distinguish companies that do not contribute significantly to the report.The next chapter,Business Model,contains more information about the E.ON Groups structure and business segments.The reporting period is the 202
163、2 calendar year.For most KPIs the corresponding prior-year figure is provided to improve comparability.Adjustments to prior-year figures of a KPI are explained in footnotes.Statements on the future development of E.ON and its subsidiaries are estimates based on information available at the time of r
164、eporting.Actual results may deviate from these statements.The report was published on March 15,2023,and is available in German and English in pdf format.You can download the pdf version of this report at .The previous Annual Report and previous Sustainability Report were published in March 2022.You
165、can find them and additional reports in the investor relations archive.Combined Group Management Report Contents Search Back About this Report Corporate Profile Climate Protection and Environmental Management Employees and Society Governance Sustainable Finance Business Report Forecast Report Risks
166、and Chances Report Internal Control System Disclosures Regarding Takeovers Corporate Governance Declaration 30 E.ON Integrated Annual Report 2022 Language To improve readability,we generally use the shorter name for companies and organizations(such as“E.ON”rather than“E.ON SE”).Sustainability Rating
167、s E.ONs commitment to transparency includes subjecting its sustainability performance to independent,detailed assessments by specialized agencies and capital-market analysts.The findings of these assessments provide important guidance to investors and to E.ON.They help us identify our strengths and
168、weaknesses and further improve our performance.The Sustainable Finance chapter presents the results of sustainability ratings.Assurance The Combined Group Management Report is generally audited as part of the statutory audit of the financial statements.Content that is not part of the statutory audit
169、 of the Consolidated Financial Statements and is therefore excluded from the auditors report is identified separately,as described below.For the NFS and selected additional sustainability information,a separate assurance engagement(“Sustainability Assurance”)was also performed by KPMG AG in accordan
170、ce with the International Standard on Assurance Engagements(“ISAE”)3000(Revised)issued by the International Auditing and Assurance Standards Board(“IAASB”).The audit assurance applied to the different contents is clarified in the report by means of various symbols.Symbols next to headings H2 apply u
171、ntil the next heading of the same level of hierarchy.Sections within the same chapter that were audited with a different assurance may be marked separately.This is done in longer sections by means of symbols next to the subheadings H3 which apply until the next heading of the same level of hierarchy
172、.In addition,individual sections or KPIs that are subject to a different audit assurance may be marked separately.The corresponding contents are marked as follows:Not part of the statutory audit,audited with reasonable assurance as part of the Sustainability Assurance in accordance with ISAE 3000.No
173、t part of the statutory audit,audited with limited assurance as part of the Sustainability Assurance in accordance with ISAE 3000;individual text passages are indicated by.Not part of the statutory audit,unaudited;individual text passages are indicated by .Prior-year figures and quantified changes f
174、rom the prior year included in sections marked as audited are audited with limited assurance.The precise scope of the audit is described in the Other Information section in the Independent Auditors Report and in the report on the management review of sustainability information.Combined Group Managem
175、ent Report Contents Search Back About this Report Corporate Profile Climate Protection and Environmental Management Employees and Society Governance Sustainable Finance Business Report Forecast Report Risks and Chances Report Internal Control System Disclosures Regarding Takeovers Corporate Governan
176、ce Declaration 31 E.ON Integrated Annual Report 2022 Corporate Profile Business Model E.ON is an investor-owned energy company with approximately 71,600 employees led by Corporate Functions in Essen.The Groups core business is divided into two segments:Energy Networks and Customer Solutions.Corporat
177、e functions and equity interests managed directly by E.ON SE are reported under Corporate Functions/Other.Non-strategic operations are reported under Non-Core Business until the end of 2022 and effective 2023 under Corporate Functions/Other.Corporate Functions Corporate Functions main task is to lea
178、d the E.ON Group.This involves charting E.ONs strategic course and managing and funding its existing business portfolio.Corporate Functions tasks include optimizing E.ONs overall business across countries and markets from a financial,strategic,and risk perspective and conducting stakeholder manageme
179、nt.Energy Networks This segment consists of E.ONs power and gas distribution networks and related activities.It is subdivided into three regional markets:Germany,Sweden,and East-Central Europe/Turkey(which consists of the Czech Republic,Hungary,Romania,Poland,Croatia,Slovakia,and the stake in Enerji
180、sa Enerji in Turkey,which is accounted for using the equity method).This segments main tasks include operating its power and gas networks safely and reliably,carrying out all necessary maintenance and repairs,and expanding its power and gas networks,which frequently involves adding customer connecti
181、ons and the connection of renewable energy generation assets.Customer Solutions This segment serves as the platform for working with E.ONs customers to actively shape Europes energy transition.This includes supplying customers in Europe(excluding Turkey)with power,gas(conventional and green),and hea
182、t and providing them with sustainable solutions that enhance their energy efficiency,energy autonomy,and eMobility.E.ONs activities are tailored to the individual needs of customers across all categories:residential,small and medium-sized enterprises,large commercial and industrial,sales partners,an
183、d public entities.The E.ON Groups main presence in this business is in Germany,the United Kingdom,the Netherlands,Nordics(for example,Sweden,Denmark,and Norway),Italy,the Czech Republic,Hungary,Croatia,Romania,Poland,and Slovakia.In addition,Energy Infrastructure Solutions engages in activities aime
184、d at decarbonizing commercial customers,cities,and communities,such as sustainable city solutions and district heating.Non-Core Business This segment consists of the E.ON Groups non-strategic activities.This applies to the operation and dismantling of nuclear power stations in Germany(which is manag
185、ed by the PreussenElektra unit)and the generation business in Turkey.Effective 2023,Non-Core Business is disclosed under Corporate Functions/Other.ESG Materiality and Stakeholder Engagement ESG Materiality GRI 3-1,GRI 3-2 E.ON has conducted an annual materiality analysis since 2006.The purpose is to
186、 identify and evaluate the sustainability topics that are most important to the Company and its stakeholders.This report contains information on the topics whose materiality the analysis deemed to be particularly high.It also addresses less material sustainability topics.E.ON thus aims to meet the d
187、ifferent expectations of stakeholders as well as the requirements of environmental,social,and governance(“ESG”)rankings and ratings.We provide an overview of the material and other topics in the Non-Financial Statement(“NFS”)Index.Identification of Material Topics E.ON conducted its materiality anal
188、ysis in 2022 in accordance with the requirements of the Non-Financial Reporting Directive(“NFRD”).The requirements of the Corporate Sustainability Reporting Directive(“CSRD”)were taken into account,but not applied.We applied the double materiality principle:we considered the financial perspective as
189、 well as the impact perspective.The process had four steps,which are described below:Step One:Topic Identification and Collection E.ON first gathered information and evidence on potentially material topics.We consulted a variety of sources,including regulations,reporting standards as well as stateme
190、nts from customers,competitors,investors,and non-governmental organizations(“NGOs”).We used this to create an overview of possible material topics.These were then compared with our existing material topics,collated,and reduced to a common denominator.The basis for this was an evaluation that correla
191、tes a topics frequency of mention to its importance for the industry.Experts from Sustainability,Group Accounting,and Investor Relations divisions reviewed and finally agreed on a short list of E.ONs potentially material topics.Step Two:Impact Perspective E.ON analyzed the impact perspective by surv
192、eying NGOs,research institutes,suppliers,customers,and other stakeholders.We gave them a questionnaire containing the topics identified in step one and asked them to rate them.The questionnaires findings were then examined in greater depth in stakeholder interviews.Representatives from the Sustainab
193、ility,Group Accounting,Investor Relations,and Group Risk functions Combined Group Management Report Contents Search Back About this Report Corporate Profile Climate Protection and Environmental Management Employees and Society Governance Sustainable Finance Business Report Forecast Report Risks and
194、Chances Report Internal Control System Disclosures Regarding Takeovers Corporate Governance Declaration 32 E.ON Integrated Annual Report 2022 evaluated the surveys findings in a workshop,which concluded the impact analysis.Step Three:Financial Perspective E.ON evaluated the financial perspective by
195、examining the risks and opportunities associated with the ESG topics contained in its Enterprise Risk Management(“ERM”)system.Another workshop was then held to assess and validate the financial materiality of the topics identified.Representatives from the aforementioned functionsSustainability,Inves
196、tor Relations,Group Accounting,and Group Riskparticipated as well.Step Four:Materiality Threshold E.ON finalized the list of topics by defining a common materiality threshold for the impact and financial perspectives.Only topics that exceeded it were considered material.To determine them,we held a t
197、hird workshop consisting of the above-mentioned participants.The findings were then presented to the Sustainability Council,which approved E.ONs materiality analysis for 2022.Material Topics The findings of the materiality analysis for 2022 are listed below.The highest relevance from a financial and
198、 impact perspective was assigned to the following three topics:Climate-change mitigation Energy affordability Reliable energy supply.The material topic of climate-change mitigation also encompasses customer solutions that mitigate climate change.Since both aspectsgeneral climate-change mitigation an
199、d customer solutions that mitigate climate changeare extensive,they are presented in separate chapters in the Integrated Annual Report 2022.The chapters of this report provide information on E.ONs approach to managing its material topics and outline the Companys progress in the reporting year.The de
200、scription of the management approach is based on GRI 3-3,Management of material topics.Stakeholder Engagement GRI 2-28,GRI 2-29 E.ON continually seeks dialogue with its various stakeholders.We want to listen to and understand their points of view and also to talk to them openly about the potential s
201、hort-and long-term impacts of our business activities.This is an important objective of our daily work at the local,national,and European level.A stakeholder is any person who or any group that has an interest in a company.Stakeholder engagement is thus a core process of E.ONs corporate governance.T
202、he dialogue formats we choose vary by stakeholder and topic.They range from information campaigns and discussion forums with associations and NGOs to face-to-face discussions and lobbying.For example,E.ON is actively involved in the global investor initiative CDP(Carbon Disclosure Project),works wit
203、h the United Nations Environment Programme(“UNEP”),and supports the UN Decade on Ecosystem Restoration.Furthermore,since 2021 E.ON has been part of the LEAF Coalition(Lowering Emissions by Accelerating Forest Finance),which is committed to biodiversity and the protection of tropical forests.More inf
204、ormation on CDP and the LEAF Coalition can be found in the“Climate Protection”chapter.E.ON is also a member of SolarPower Europe,a European association of energy suppliers and solar companies.The Solar Stewardship Initiative(“SSI”)was set up as part of this association.Its aim is to create more tran
205、sparency for solar-power supply chains and to ensure compliance with human rights.E.ON actively participates in policy debates on issues that affect the Company.We use a variety of channels for this,including lobbying,media interviews with our executives,and their appearances as public speakers.In a
206、ddition,policymakers and regulators frequently invite E.ON to provide its technical and energy expertise as part of their decision-making processes.The Company offers its expertise proactively as well.This type of advocacy are important because the energy sector is significantly influenced by policy
207、 and regulatory decisions.In 2022 we assisted the German federal government,particularly by supporting its plans for tackling the energy crisis.E.ON CEO Leonhard Birnbaum was a member of the independent Expert Commission Gas and Heat,which was commissioned by the German government to develop proposa
208、ls that can relieve households and businesses from the sharp rise in gas prices.Furthermore,E.ON takes part in discussions on energy,environmental,and climate policy in a variety of other forums.For example,E.ON CFO Marc Spieker was a member of the European Commissions Platform on Sustainable Financ
209、e until the end of October 2022.In addition,Leonhard Birnbaum is part of the European CEO Alliance,an alliance of EU-wide business leaders who discuss ways to provide additional support to the EU Green Deal.Effective November 21,2022,Leonhard Birnbaum was appointed acting president of Eurelectric,th
210、e association of the European electricity industry.Eurelectric is an umbrella organization representing more than 3,500 European companies active in electricity generation,distribution,and supply.Direct members of Eurelectric are the national associations,including the German Association of the Ener
211、gy and Water Industries(German abbreviation:“BDEW”),Swedenergy,and Energy UK.The Climate Advocacy and Associations Report provides an overview of E.ONs lobbying approach as well as the associations and initiatives which the Company is part of and the key positions it holds in conjunction with its ef
212、forts to propel the energy transition.All of E.ONs lobbying activities and dialogue formats comply with national and European laws and guidelines on representing corporate interests and responsible lobbying.Combined Group Management Report Contents Search Back About this Report Corporate Profile Cli
213、mate Protection and Environmental Management Employees and Society Governance Sustainable Finance Business Report Forecast Report Risks and Chances Report Internal Control System Disclosures Regarding Takeovers Corporate Governance Declaration 33 E.ON Integrated Annual Report 2022 Below is an overvi
214、ew of E.ONs most important stakeholders,their significance for E.ON,and their expectations of E.ON.Combined Group Management Report Contents Search Back About this Report Corporate Profile Climate Protection and Environmental Management Employees and Society Governance Sustainable Finance Business R
215、eport Forecast Report Risks and Chances Report Internal Control System Disclosures Regarding Takeovers Corporate Governance Declaration 34 E.ON Integrated Annual Report 2022 E.ON is a member of numerous industry networks and trade associations in individual countries and at the European level.They e
216、nable companies to share information about climate protection,customer needs,and industry trends and to represent shared interests to policymakers and regulators.Examples of these memberships include:German Association of Energy and Water Industries(German abbreviation:“BDEW”):through the BDEW E.ON
217、is also represented in two European trade associations,Eurelectric and Eurogas.German Industry Initiative for Energy Efficiency(Deutsche Unternehmensinitiative Energieeffizienz,or“DENEFF”):a multi-industry network of companies and organizations dedicated to enhancing energy efficiency.Bitkom:through
218、 this industry initiative for a digital economy the Company is also represented in the Federal Association of German Industry(Bundesverband der Deutschen Industrie)and its European umbrella organization,Businesseurope.E.ON executives take part in the Economic Council of the CDU e.V.and the Economic
219、Forum of the SPD e.V.European Distribution System Operators for Smart Grids(“EDSO for Smart Grids”):European association promoting smart grids and the digitalization of the energy sector.Energy UK:a trade association for energy in the United Kingdom.Swedenergy:a private association of companies invo
220、lved in electricity production,sale,and trading in Sweden.The Romanian Federation of Associations of Energy Utilities:a federation of energy suppliers in Romania.Non-Core Business:Stakeholder Dialogue on Reliable Operations and Plant Dismantling E.ON subsidiary PreussenElektra is responsible for the
221、 safe and reliable operation and dismantling of its nuclear power plants(“NPPs”).Ongoing dialogue with stakeholders is essential.PreussenElektra communicates with a broad spectrum of stakeholders through press releases and briefings.The company also uses events and forums to speak directly with its
222、stakeholders and benefit from their feedback.The aim of all these measures is to provide transparent information and build trust.In view of the discussion about the possible continued operation of NPPs,PreussenElektra enhanced its dialogue with local stakeholders at Isar NPP.PreussenElektra also con
223、ducted transparent public relations by increasing its online communications and maintaining an active dialogue with national media.Dialogue will also remain important during NPPs decommissioning and dismantling.In 2022 E.ON held press events at all its NPPs.Annual power plant talks with key local st
224、akeholders took place in the fall as well.Some plants also have dialogue groups for nearby residents,in which PreussenElektra also participated in 2022.People who live near Brokdorf,Isar,Grohnde,and Grafenrheinfeld NPPs were given the opportunity to visit the plants on selected dates.Strategy 2022:N
225、ew Challenges and a Robust Strategy The turbulence of 2022,triggered by the Russia-Ukraine war,presents the world with major new challenges.High and significantly more volatile commodity prices,rising interest rates,inflation,and additional strains on supply chains already disrupted by the Covid-19
226、pandemic created uncertainty.As part of a periodic review,the updated strategic course the E.ON Group set in 2021 was critically scrutinized in view of these factors.Individual countriesand not just their policymakerswant energy security and energy autonomy based primarily on decentralized and renew
227、able power generation and distribution.This will require resilient and digital energy infrastructure;and that is exactly what E.ONs power and gas networks represent.Supply security will be at the forefront.The new growth strategy E.ON formulated in 2021founded on sustainability,growth,and digitaliza
228、tionis part of this future.E.ONs strategy has proven itself to be robust,even amid disruptive events.In the Energy Networks segment,E.ON is systematically implementing its strategy in the context of current developments.Investments in the 2022 financial year went mainly toward network expansion and
229、modernization in line with the needs of the energy transition.A significant part of Europes renewables capacity is connected to the E.ON Groups networks.These networks are the backbone of the energy transition,which can only succeed if they grow at the same rate as the demand for connections.The Cus
230、tomer Solutions segmentconsidering the significant demand for smart solutions and products to decarbonize households and industryis proving to be solid.This demonstrates that many people want to take their energy supply into their own hands.Prosumers are becoming a reality faster than many expected.
231、E.ON is Europes largest provider of energy solutions for decarbonizing households.E.ONs broad range of products and services enables its customers and partners to displace more than 100 million metric tons of CO2e annually.Alongside the increase in residential demand we also saw greater demand for d
232、ecarbonizing entire city districts as part of district heating and cooling projects.Energy Infrastructure Solutions(“EIS”)significantly increased its earnings and investments compared with the prior year.It also developed and acquired future-oriented projects.Combined Group Management Report Content
233、s Search Back About this Report Corporate Profile Climate Protection and Environmental Management Employees and Society Governance Sustainable Finance Business Report Forecast Report Risks and Chances Report Internal Control System Disclosures Regarding Takeovers Corporate Governance Declaration 35
234、E.ON Integrated Annual Report 2022 The sustainable transformation of the energy system is a long-term task.The current crisis highlights and reinforces the importance and necessity of change;it must be further accelerated.After many disputes about the right course,a consensus is emerging between pol
235、icymakers,companies,and societyboth in Germany and in Europe.The European Commissions revised targets for speeding up renewables expansion will further increase the demand to connect these facilities to networks and thus also the need to expand network capacity.The anticipated increase in demand for
236、 hydrogen to replace coal,gas,and oil in industry is ambitious and will also require massive investment in energy infrastructure.All this will offer us new opportunities and confirms E.ONs strategic course.Connecting Everyone to Good Energy Europes energy transition is irreversible and gaining pace,
237、even amid the current market situation.This poses new challenges for the energy industry but also creates tremendous opportunities.E.ON is a leading network operator,and its Customer Solutions segments supplies roughly 48 million customers(including customers in Turkey and of ZSE in Slovakia)with en
238、ergy.This positions us better than any other energy company in Europe to profoundly shape the new era of green energy and to play a leading role in the distributed,zero-carbon energy world of the future.Our strategy has three key componentssustainability,digitalization,and growthon which we will foc
239、us our human and financial resources in the years ahead.Sustainability is the core of E.ONs strategy andin all dimensionswill be the guiding principle for our future actions.E.ON intends to become climate-neutral itself,and helping our customers reach their climate targets will be a key growth drive
240、r.Sustainability E.ONs strategy fits seamlessly with the European Unions decarbonization agenda.Europes distribution networksE.ONs biggest businessare where the energy transition is happening.The investments necessary to upgrade,expand,and digitalize these networks in the decade ahead are estimated
241、at over 425 billion.This amount of investment is roughly equal to the size of Belgiums entire economy.The European Commissions desire to accelerate this expansion will be an additional driver.E.ONs strategy fits with two of the EU Green Deals programs:the Horizon Europe program(which will provide ab
242、out 15 billion of funding through 2027 for climate,energy,and mobility projects)and the Innovation Fund(which will mobilize about 10 billion through 2030 to help low-carbon technologies become market-ready).Many of these projects and technologies are relevant for E.ONs customer solutions business.To
243、 seize the growth opportunities in its core business,E.ON plans to invest a total of roughly 33 billion from 2023 to 2027,of which around 26 billion will go toward energy networks and 7 billion toward customer solutions.This investment program aims to be fully aligned with the EU Taxonomy;82 percent
244、 of E.ONs investments in its core business in 2022 fell within the taxonomys scope;98 percent of these investments are green.More than half of the funding for these investments will be raised through the issuance of green bonds.E.ONs updated strategy thus also caters to capital markets increasing in
245、terest in sustainable investments.More information about E.ONs disclosures in line with the EU taxonomy for the 2022 financial year can be found in the“EU Taxonomy”chapter;the“Sustainable Finance”chapter contains more information about green bonds.Climate protection will be a key driver of E.ONs fut
246、ure growth.The Science Based Targets initiative(“SBTi”)validated E.ONs climate targets in May 2022.They are consistent with keeping global warming to 1.5 C above preindustrial levels.In addition,E.ON pledges for its Scope 1 and 2 emissions to achieve climate neutrality by 2040(and to cut Scope 1 and
247、 2 emissions by roughly 75 percent by 2030).E.ON intends for its Scope 3 emissions to be climate-neutral by 2050(and to reduce them by about 50 percent by 2030).All reductions are relative to 2019.These objectives set a course that is both ambitious and viable:a reduction path consistently aligned w
248、ith the new energy world in keeping with E.ONs strategy.In addition,in 2022 E.ON began to voluntarily offset emissions it is currently unable to avoid.Offsets help fund measures that reduce or prevent carbon emissions outside E.ONs value chain.E.ONs flagship offsetting program is its partnership,beg
249、un in 2021,with the LEAF Coalition,which stands for Lowering Emissions by Accelerating Forest Finance.LEAF offsets help protect tropical forests and manage them sustainably.E.ONs LEAF program will initially run through year-end 2027.ESG aspects are systematically embedded into E.ONs central control
250、and management processes.In addition,each business units management team is responsible for taking action to enhance sustainability and to meet the units sustainability targets.This decentralized approach enables the units to contribute to E.ONs Group-wide targets for issues like climate protection
251、and corporate governance,while also tailoring their actions to their specific needs.Each unit has sustainability staff who reinforce awareness,coordinate projects and initiatives,and monitor progress toward targets.They share information at regular intervals with our Sustainability Council and the E
252、.ON Groups Sustainability team.Digitalization Digitalization will be a cornerstone of the energy landscape of the future.The transition toward a distributed,volatile,and networked energy world will be accompanied by increasing complexity that can only be managed through comprehensive digitalization.
253、Digitalization is thus an important lever in E.ONs growth strategy and the basis for generating additional value in its core business over the long term.E.ONs objective is to become a fully digital energy company and to fundamentally transform its products,processes,and services into data-driven and
254、 highly networked solutions.Our digital transformation is proceeding along four strategic pathways:optimizing internal operations,engaging Combined Group Management Report Contents Search Back About this Report Corporate Profile Climate Protection and Environmental Management Employees and Society G
255、overnance Sustainable Finance Business Report Forecast Report Risks and Chances Report Internal Control System Disclosures Regarding Takeovers Corporate Governance Declaration 36 E.ON Integrated Annual Report 2022 customers and partners,transforming and developing new business areas,and enhancing em
256、ployees digital skills.The centerpiece of our digital transformation is a common technology platform(“CTP“)for the entire Group.The CTP will serve as the basis for standardizing and harmonizing all applications in the E.ON Group necessary for the energy transition.It will enable us to develop new di
257、gital energy solutions while maintaining the highest security standards.The foundation of E.ON One,a new subsidiary for digital solutions,has enabled the E.ON Group to pursue the objective of offering and operating innovative IT solutions for the external market and E.ON Group companies.E.ON Ones po
258、rtfolio will be formed by targeted investments in E.ONs own innovations and in startups.This will make it possible to smartify networks and render energy consumption more sustainable.E.ON One focuses on three business areas:grid management,grid operations,and energy management solutions.These areas
259、form the basis of a successful energy transition.For example,E.ON One offers a wide range of energy management solutions that give customers more transparency about their consumption and automatically optimize consumption and generation.Energy Networks top priorities include standardization,smartifi
260、cation,and the development of new digital solutions all with the highest cybersecurity standards.Digitalization helps E.ON operate its networks even more efficiently and optimally manage the growing proportion of power from renewable generating facilities.The development of digital solutions like sm
261、art eMobility charging solutions as well as new services on both sides of standard residential meters and smart energy meters are also part of E.ONs growth strategy.Growth E.ONs core business consists of two segments:Energy Networks and Customer Solutions.E.ON operates power and gas networks in vari
262、ous regions of Europe and offers a broad range of customer solutions.The two businesses complement each other amid the transformation of global energy systems.They are also clear growth businesses that benefit from the sustainable transformation of various customers and industrial sectors.This trans
263、formation expands E.ONs business opportunities as well.And our growth strategy fits seamlessly with Europes decarbonization ambitions.Ongoing renewables expansion and the increasing challenges this poses for power networks will require investments of more than 425 billion to transform electricity di
264、stribution networks.The growth in the aggregate energy demand of E.ONs customer groups is estimated to increase by more than 100 percent between 2020 and 2050.A sustainable transformation of the economy is necessary for this as well.E.ON is aiming for earnings growth in both the Energy Networks and
265、Customer Solutions segments,supported by continual efficiency improvements.The measures in this area focus primarily on achieving operational excellence.We are likewise aware that our growth strategy can only be implemented if it is accompanied by changes within our organization,such as cultural cha
266、nge,diversity,and education.Comprehensive measures to propel these changes are therefore integral to our strategy.Growth in the Energy Networks Segment The transition to a new,sustainable,and connected energy world will require considerable investments in physical and digital assets.As stated above,
267、this applies above all to the Energy Networks segment,which is the backbone of a successful energy transition.Ongoing renewables expansion in particular will require grids to grow at a similar pace.New network connections and connected load will increase sharply amid the energy transition owing to c
268、hanges in customer behavior.The energy transition alone therefore represents an unprecedented growth opportunity for E.ON,an opportunity that is being further accelerated by the current developments in Europes energy system and momentum for the energy transition.Consequently,this growth will be acco
269、mpanied by the suitable and sensible digitalization of networks because they are a key component of E.ONs growth strategy and a prerequisite for the implementation of the energy and climate transition in distribution networks.The use of smart-grid technology like smart energy meters and smart transf
270、ormer stations,the integration of external data,the standardization of construction and operating processes,and the use of a central data platform all offer considerable potential.Where necessary for technical reasons and economically feasible,E.ON will acquire the capability to monitor and control
271、its distribution networks across all voltage levels in order to optimize their operation.Sensors and smart energy metering and control technology will enable real-time control of distributed generation and consumption.E.ONs existing gas networks will continue to play an important role in the transfo
272、rmation of the energy system.Going forward,E.ON will also,where legally possible and economically sensible,make its existing gas networks hydrogen-ready.These investments will help pave the way toward climate-neutral gas networks.E.ONs capabilities along with the above-average efficiency of its netw
273、ork operations will enable it to lead the necessary transformation of the energy system.Eight of E.ONs nine distribution system operators(“DSOs”)in Germany have an efficiency rating of 100 percent,with three of them earning a super efficiency bonus.All E.ON DSOs surpass the industry average.This is
274、among the reasons why E.ON is one of Europes leading DSOs.E.ON has a regulated asset base(“RAB”)of 36.4 billion,and its regulated business generates a large share of its EBITDA.E.ONs strategic objective is therefore to remain Europes leading energy and infrastructure partner.E.ON plans to direct a l
275、arge portion of investments during the 20232027 planning period toward network expansion and a variety of network projects.The Forecast Report contains details about planned investments.Growth in the Customer Solutions Segment E.ONs Customer Solutions segment focuses on the energy services business
276、and the Energy Infrastructure Solutions(“EIS“)businesss activities in distributed energy.Combined Group Management Report Contents Search Back About this Report Corporate Profile Climate Protection and Environmental Management Employees and Society Governance Sustainable Finance Business Report Fore
277、cast Report Risks and Chances Report Internal Control System Disclosures Regarding Takeovers Corporate Governance Declaration 37 E.ON Integrated Annual Report 2022 The energy services business includes power and gas retail sales.This is a scalable business model with comparatively low capital requir
278、ements and focuses on private households and small and medium-sized enterprises.E.ONs objective for this business is to retain its roughly 48 million customers across Europe(including customers in Turkey and at ZSE in Slovakia)in the long term by offering them a sustainable energy supply and energy
279、solutions and thus reducing their environmental footprint and by helping Europe to reach its energy conservation targets,particularly residential customers gas consumption.So that this objective can be achieved at competitive costs,E.ON systematically pursues digitalization which promotes optimal op
280、erating efficiency and superior customer satisfaction and loyalty(customer relationship management)as well as cross-selling opportunities.E.ONs solutions business focuses primarily on the Future Energy Home(“FEH“),a portfolio of distributed energy systems for households.They include self-generation
281、of green solar power,energy storage,heat,and eMobility solutions.The European Commissions solar strategy for the EU,which includes the target of doubling Europes solar power capacity by 2025,will serve as an additional growth driver.The expansion of suitable eMobility infrastructure is another key s
282、trategic priority.The eMobility market is undergoing change and is characterized by robust growth:at least 15 million electric vehicles are expected to be registered in Germany by 2030.Charging infrastructure,by contrast,is expanding at a slower pace.E.ON therefore believes the near term is the time
283、 for rapid growth activities,because all attractive locations for charging infrastructure will presumably have been allocated in the years ahead.Our objective is to enlarge our current market position and become one of Europes leading operators of charging infrastructure by 2030.In 2022 E.ON sold 20
284、,417 charging points for residential and business customers in many European countries.EISs activities encompass innovative energy solutions that help cities,municipalities,and industrial customers achieve their climate targets cost-effectively.E.ON aims for its EIS business unit to achieve addition
285、al growth and become the preferred transformation partner for sustainable,innovative energy solutions.EISs core business consists of a portfolio of solutions for embedded power,heat,and cooling plants as well as solutions for energy efficiency and decarbonization along with other energy services.E.O
286、N sees green hydrogen in particular as a key strategic growth opportunity in this space over the medium term and has established a hydrogen business unit to meet industrial customers increasing demand for green gases in the future.E.ON assumes that by 2040 the demand for hydrogen will extend across
287、the industrial,mobility,heat,and electricity sectors.In addition,hydrogen will play an essential role in the climate-neutral energy system of the future.In the short term,E.ON will partner with its customers to move forward with hydrogen projects that are already under way in quintessential industri
288、al regions like the Ruhr district and,over the medium term,scale up the business unit internationally.This includes E.ONs strategic partnership with Australian hydrogen pioneer FFI to develop ways of importing large quantities of green hydrogen to Germany.Our international footprint in Europe gives
289、us an optimal platform for future hydrogen clusters in the North Sea region.Currently,E.ON is involved in over 50 projects along the entire hydrogen value chain to make green hydrogen available to business customers and municipalities.E.ON is thus superbly positioned to propel the energy transition
290、and satisfy the increasing demand for sustainable solutions.All business units will benefit from robust demand growth for green power and gas across all sectors(households,transportation,buildings,and industry).Commitment to the UN Sustainable Development Goals The United Nations Sustainable Develop
291、ment Goals(“SDGs”)of its 2030 Agenda for Sustainable Development provide a blueprint for a better and more sustainable future.Adopted in 2015,the 17 SDGs and 169 subgoals address a wide range of global challenges.We recognize the SDGs importance and fully support them.Our Management Board underscore
292、d this support by issuing a self-commitment to the SDGs in June 2018.E.ONs core business activities enable it to play a considerable role in fostering the SDGs 7(Affordable and Clean Energy),11(Sustainable Cities and Communities),and 13(Climate Action).All of E.ONs other contributions to the UN SDGs
293、 can be found in the SDG Index.Finance Strategy The section of the Combined Group Management Report entitled Financial Situation as well as the E.ON on Capital Markets chapter contain explanatory information about E.ONs finance strategy.People Strategy The sections of the Combined Group Management R
294、eport entitled Working Conditions and Diversity and Inclusion contain explanatory information about the main components of E.ONs people strategy as well as statements about diversity at E.ON.Innovation Innovations as Drivers for Climate-Neutral and Affordable Energy Solutions The energy industry is
295、currently facing a multitude of significant challenges,while at the same time the transformation of the energy system is in full swing.In these fast-moving and disruptive times,E.ON continues to actively shape change.More than ever,E.ON sees itself as a thought leader that views change as an opportu
296、nity and that uses innovation as a catalyst for growth.E.ON is living up to its responsibilities in the current situation in particular by developing new,innovative products and services that save energy,reduce carbon emissions,and address the issue of energy affordability.Combined Group Management
297、Report Contents Search Back About this Report Corporate Profile Climate Protection and Environmental Management Employees and Society Governance Sustainable Finance Business Report Forecast Report Risks and Chances Report Internal Control System Disclosures Regarding Takeovers Corporate Governance D
298、eclaration 38 E.ON Integrated Annual Report 2022 The development of innovations has for years been an integral part of E.ONs business and is firmly anchored in the organization.In addition to the numerous innovation activities in decentralized organizational units throughout the Group,E.ON has a cen
299、tral Innovation team that further developed its 360-degree innovation approach in 2022.This approach involves developing innovations in-house as well as working with partners worldwide:from a wide range of collaborations with universities,institutions,and companies to global startups and thought lea
300、ders.It enables E.ON to pursue its three innovation objectives of continually generating innovation projects,developing new business models for its customers in all operating businesses,and propelling the development of disruptive innovations in which E.ON sees the potential to set new market standa
301、rds.The Continuous Initiation of Projects Ensures that the Innovation Pipeline Is Always Full Continuous idea generation,swift validation of new innovation concepts,and the implementation of innovation projects are the basis for lastingly successful innovation work.E.ON views applied energy research
302、 with leading scientific institutions as a key to climate neutrality.Its long-standing partnership with the E.ON Energy Research Center(“ERC”)at RWTH Aachen University is particularly noteworthy in this regard.In 2022 E.ON placed its focus on the development of new research programs on the topics of
303、 Sustainable Decentralized Energy Systems and The Future of Heating and Cooling Supply.E.ONs network in the academic world extends far beyond its collaboration with Aachen University and encompasses international scientific institutions as well.In 2022 E.ON further expanded its long-standing North A
304、merican network.It uses collaborations such as those with Stanford University,the Global Sustainable Electricity Partnership(“GSEP”),and Free Electrons,a leading accelerator,to work with global partners from these networks to identify electrification trends and leverage synergies and thus to acceler
305、ate decarbonization and electrification.Progress was made with Stanford University students on satellite-based classification of building energy efficiency,while the collaboration with Power to Hydrogen and Simerse AI linked two more U.S.-based startups directly to E.ONs core business.To enable indu
306、strial customers reduce their natural gas consumption by using hydrogen,E.ON is developing pioneering reversible electrolyzers across a number of E.ON businesses in the Power to Hydrogen project with four international partners.This new technology is expected to reduce the cost of producing hydrogen
307、 and of using it flexibly.Simerse AI is helping E.ON extend its leading position in the development of innovative solutions for the network business.An innovative approach to training artificial intelligence enables it to test image-based maintenance processes that use robots and drones to detect an
308、d fix defects in critical utility equipment faster and more effectively.These are two more solutions implemented as part of Free Electrons,an accelerator program jointly founded by E.ON and leading global energy utilities.Together with these partners,E.ON initiated more than 20 pilot projects with 1
309、5 globally leading startups in 2022.The accelerator program focuses not only on collaboration between startups and energy utilities,but also on direct exchange between industry leaders.E.ON successfully expanded its collaboration with startups in Europe as well.One example is Dabbel,a startup that m
310、akes an important contribution toward climate neutrality by optimizing energy consumption in buildings while significantly reducing their operators energy costs.Dabbels solution enables average energy savings of 26 percent by optimizing heating,ventilation,and air conditioning technology without ins
311、talling additional hardware.E.ON City Energy Solutions(“CES”)and Avacon in Germany and E.ON Control Solutions in the United Kingdom worked together closely in 2022 to test the solution and initiate partnership models.In addition,the open innovation format of the E.ON Grid Startup Challenge,in which
312、all 18 E.ON network companies participated,yielded seven new pilot projects with startups.Alongside digitalization,the topics included ecological powerline pathway management and the resilience of network infrastructure.Hamburg-based startup Repath,for example,is conducting a project with Schleswig-
313、Holstein Netz AG to help identify local climate risks and design adaptation measures.New Business Models Secure Future Business and Pave the Way for Additional Growth A permanently changing world,opportunities created by the use of new technologies,and our customers continually evolving wishes requi
314、re an extended approach to innovation.In addition to successfully managing its existing business,E.ON needs new business models to provide the basis for its future business.Sustainability,digitalization,and growth are also the principles that guide every aspect of E.ONs development of innovations.Th
315、e central Innovation teams collaboration with E.ON business units focuses on identifying customer needs or the customer problem to be solved and developing a viable and promising business model.This enables innovation experts with years of experience to develop products faster and more efficiently a
316、nd jointly bring them to market maturity.In 2022,17 projects with anticipated sales totaling 224 million over the next five years were handed over to E.ON operating units.Examples of these innovations include the Bi-clEVer eMobility project,the Elna energy home solution,and a solution that uses smar
317、t heating control technology to enable commercial customers to conserve energy.Bi-clEVer:an Electricity Storage System on Four Wheels Electromobility is considered an important building block for the successful implementation of the energy transition.For this core area of E.ONs business,its innovati
318、on teams developed a new process that enables bi-directional charging.In 2022 E.ON joined with BMW to launch a pilot project called Bi-clEVer in the Munich Combined Group Management Report Contents Search Back About this Report Corporate Profile Climate Protection and Environmental Management Employ
319、ees and Society Governance Sustainable Finance Business Report Forecast Report Risks and Chances Report Internal Control System Disclosures Regarding Takeovers Corporate Governance Declaration 39 E.ON Integrated Annual Report 2022 area.The project primarily addresses the question of how an electric
320、vehicle(“EV”)battery,in conjunction with a photovoltaic system,can be sensibly used as an electricity storage device in households.Unlike with conventional EV charging,with bi-directional charging electricity does not flow solely toward the battery,but can,as needed,also be fed back into the homes e
321、nergy network.Elna Makes Energy Consumption Transparent and Invites People to Conserve Energy Another example is the Elna project launched in Sweden in 2022.Swedena European leader in the introduction of smart energy metersis considered an ideal market for the launch of such a product.Elna is an add
322、itional feature of the My E.ON app for residential consumers.The new functionality displays a homes energy consumption in real time.This free smart service provides detailed insights and itemized data on household consumption in up to 14 categories,including standby appliances,heat pumps,washing mac
323、hines,and EV chargers.In addition,Elna offers many other options for making energy-consumption decisions that conserve energy and thus reduce energy costs.After a successful test phase,E.ON plans to gradually increase the number of customers in Sweden.Rolling out the service in other European countr
324、ies also remains an ambitious goal.Using Artificial Intelligence to Reduce Gas Consumption in Existing Buildings Intelligent Heating Control(“ICH”)is an ad hoc solution for outdoor-temperature-based heating systems that E.ON developed and tested in 2022 in collaboration with its partner Lemonbeat.Th
325、e solution can reduce the gas consumption and thus the carbon emissions of a heating unit in an apartment building by up to 30 percent.The ICH systems effectiveness was demonstrated after its simply plug-and-play installation in two identical multifamily dwellings.The system enables property owners
326、to retrofit heating systems that have not been modernized.The solutions artificial intelligence learns the heating systems characteristics and uses a simulated outdoor temperature to provide fully automated control of the heating system in response to demand in real time.In addition to delivering co
327、st savings,this innovation builds a bridge toward climate-neutral heating.Scale Hubs Propel Innovations that Can Set New Market Standards The development of disruptive innovations is much discussed at E.ON.The work of the experts from the central Innovation team includes developing new business mode
328、ls whose concepts are based on new technological applications whose degree of maturity does not yet permit immediate market launch.Some of these innovations demonstrate above-average potential,both in terms of their commercial promise and their ability to develop new market standards.E.ON combines t
329、he development of such disruptive business models in scale hubs.The Group focuses in particular on propelling disruptive innovations as part of its innovation portfolio,without at the same time developing new approaches that call its existing business into question.Innovative Energy Community Pilot
330、Project in Tenerife The Adeje Verde pilot project that E.ON launched in 2022 represents the first energy community of its kind in Europe.It uses an innovative approach to citizen participation to create a community that enables its residents and local institutions to generate,share,and collectively
331、use renewable energy.The pilot projects objective is to provide all citizens of Adeje with access to solar energy in their immediate neighborhood,becoming role models for a fast-growing energy community.The Canary Islands has set the target of meeting all its energy needs with renewables by 2040.Spa
332、in is a pioneer in new energy regulation and thus the ideal place for a pilot project to serve as a blueprint for Europe-wide approaches.In October 2022 the Clean Energy for EU Islands Secretariate recognized Adeje Verdes groundbreaking work by selecting it as one of three finalists of the#CE4EUIsla
333、nds Game Changer Award.The central Innovation teams 360-degree approach has created an E.ON-wide innovation platform.It makes its expertise and experience available to all E.ON units and thus serves as a perpetual innovation engine for the E.ON Group,transforming ideas from the drawing board into tangible value for the Company.The central Innovation team supports both the future of E.ON on its gro