CEZ Romania appoints ESG Ambassadors from among its employees

Alina Oprea
CEZ is strengthening its ESG requirements stemming from the improvement potential, set according to reporting standards and financial institutions, says Ondrej Safar, CEO and Member of the Board of CEZ Romania. He talked to Green Forum about the social responsibility and health projects that the company is preparing in 2023 and about the company's energy production projects from renewable sources. In the direction of aligning its decarbonization efforts, the company is working at the NET ZERO Business Plan for CEZ, considering the strategic targets set until 2040.

The creation and execution of ESG strategies is a top priority of all large corporations right now. Can you walk us through how this process works at CEZ Romania?

CEZ has already taken important steps in building its ESG strategy and actions while consolidating its progress toward a sustainable business. We have a dedicated department meant to oversee the implementation of the ESG strategy within the Group and to drive the transformation process we started.

The ESG strategy was developed following a process of synthesis and analysis of strategic directions through consultation with relevant CEZ stakeholders, which resulted in the following pillars:

  • decarbonization, energy efficiency, and green energy
  • care for the environment
  • health and safety at work
  • employees and communities
  • ethical business conduct
  • translating ESG principles into organizational culture

To date, we have strengthened our ESG requirements stemming from the improvement potential, set according to reporting standards and financial institutions. These will result in action plans for the implementation of the ESG strategy at the level of CEZ companies. 

In the direction of aligning our decarbonization efforts, we are working at the NET ZERO Business Plan for CEZ, considering the strategic targets set until 2040.

In terms of results, in the governance area, we have developed the ESG Policy and Committee and established how to disseminate information as well as appoint ESG Ambassadors from among our employees.

In the area of decarbonization, we have finalized the audit of the results for 2019, considered as the reference year for the measurements; we have also centralized the figures for 2022 and the first quarter of 2023.

As per sustainability, CEZ is not at its first endeavour. We first measured our impact footprint in Romanian society, in 2017, with an Impact Report and continued since to record and announce our Sustainability results via our annual Sustainability Reports which are GRI attested.

What social responsibility and health projects is the company preparing in 2023?

We continue to grow and develop our CSR initiative while cultivating long-lasting partnerships across the local community from our operational area with NGOs, Associations, and educational institutions such as high schools and universities as well as hospitals. We aim to produce a positive impact on the local community by addressing its most important needs: health, education, social development, and a sustainable environment.

We started a new edition of the Generators of Wellbeing, an internal project challenge for CEZ employees who have to propose dedicated CSR projects for the local community. The project is ongoing and in mid-June, we shall choose 9 winning projects which will get €10,000 each. I am very curious about what social causes and community needs my colleagues will try to support this year.

Oltenia Marathon as one of our core CSR projects will also continue and the fees paid by competitors will be doubled by us and donated to 3 social causes from Valcea County with direct benefits in terms of health, education, and well-being, for children from disadvantaged areas.

The list continues with dedicated 8 March (FeminineEnergy) and Easter (when we donated 4 pacemaker appropriate interventions at the Targu Jiu County Hospital) campaigns, which we made alongside our business partners, and so on and so forth. 

What energy production projects from renewable sources does the company have now? What is the total installed capacity?

We own one of the largest onshore wind farms in Europe, which is situated in Dobrogea, in the area of Fantanele, Cogealac, and Gradina. CEZ's wind farm has a total capacity of 600 MW, including 240 turbines of 2.5 MW, and is fully operational since 2012.

In addition, CEZ's portfolio of renewable assets includes since 2012 the hydropower system in Caras Severin, near Resita also, consisting of 4 hydropower plants (Grebla, Crainicel 1, Crainicel 2, and Breazova) and related hydro facilities. With an initial installed capacity of 18 MW, the system was upgraded in 2013 and the installed capacity increased to 22 MW. Both the wind farm and the hydropower system represented for us an investment of about €1.3 billion.

Do you consider selling some of this capacity? Or are you rather focusing on its expansion?

Our current RES plans include operating our renewable portfolio in the direction of our 2 major strategic directions: the development of the existing portfolio (from the implementation of battery storage projects and floating PV plants, to hybrid projects, and a lot of related service initiatives) and the analysis of opportunities for new projects, projects that, in a context of predictability and stability, can materialize. Here, I can mention our current €5 million energy storage project that involves a complete 6MW/ 6MWh Battery Electricity Storage and Supply System (BESS), developed at CEZ wind farm.

In addition, we are preparing a new initiative in the area of energy storage, which depending on implementation has the potential to be unique at the national level in terms of complexity and size (>100 MWh storage). The project has an implementation period until the end of next year and depends on the receipt/acceptance of the application for co-financing from European funds.

In the hydropower system, we are implementing a new 0.4 MW hydropower generation capacity within the existing plant at Breazova with an accessed partial, non-reimbursable funding through the EEA and Norwegian financial mechanisms 2014-2021, of about €1 million. Also, this year we are preparing a new energy production capacity by installing 1 MW floating photovoltaic power plants on the surface of the Grebla Lake. The energy produced by the plant will be used mainly to cover internal energy consumption, and the estimated investment is more than €1 million, with co-financing from Norwegian funds.

CEZ Romania donated free green energy to some institutions in the past years. Will you continue this project? If so, where exactly?

Many of our projects and initiatives have a green aura and we continue to be a promoter of green energy and energy efficiency in our operational area, as well as the local community. It's true that we donated free green energy to the Children's Palace in Alexandra, Teleorman County for 6 months in 2021, but our green endeavours are much wider.

In the supplying area, we are committed to fighting the energy poverty that vulnerable customers face, by:

  • Implementing campaigns such as ”Energy Shelter". In 2022, 41 sqm of energy-efficient PVC joinery was installed and 50 old light bulbs were replaced with energy-saving ones in 5 households in Arges, Dolj, and Mehedinti, the homes of 5 children with very good learning results. In 2021, Energy Shelter meant equipping the homes of 15 children from single-parent families in Targu Jiu with modern appliances, making them more energy efficient and comfortable.
  • Energiada - informational and educational campaign with practical tips for monthly savings on utility bills. It included a series of concrete actions and the sharing of 5 inspiring stories of successful Romanians (Sebastian Dobrincu, Surubel, comedian and radio presenter, Cristina Andrei, food blogger, Adrian Samson, Neversea representative/organizer, and Diana Bulimar, gymnast), who have performed not only in their field of activity but also in the energy field.
  • The recently closed European project SocialWatt, where we promoted energy efficiency.

CEZ Vanzare remains a committed promoter of green energy, but also of saved energy, and continues to educate its customers through the Efficiency Portal and an E-book with energy efficiency tips – Energy Efficiency Handbook for home.

Plus, on the green line, CEZ is involved in the installation of photovoltaic panels at high schools, as well as supporting the energy consumption of small farmers in the dry areas of Oltenia. We have already installed photovoltaic panels worth €160,000 at 9 high schools in our operational area and at 2 farmers in Dabuleni, Dolj, and Berislavesti, Olt.

Furthermore, we started this year a new awareness campaign, Online Oxygen which tackles online activity and its carbon footprint.

From the distribution operator's point of view, we are concluding another green initiative called ”10 at Energy”, a challenge sent to all secondary schools from Distributie Oltenia's operational area. More than 400 schools have registered in the competition and will have to undertake 4 interactive lessons on energy and sent the results of their activities. By the middle of June, we will choose the winner and we will install photovoltaic panels for that school.

How many employees do you currently have and how many of them are women? What do you think needs to change for the energy sector to become more attractive for female professionals?

We currently have 1958 employees of which 29% are women. The energy sector is now dominated by male employees but that tends to change or, at least is changing from our perspective.

For example, in Electrician Apprentice, Distributie Oltenia's project is meant to help develop the new generation of electricians, we have 44 female students this school year. We also promote a dedicated event for the female students enrolled in the Electrician Apprentice project, meant to change the perspective about the energy sector being solely dedicated to men. 

Considering the price increases in the energy sector in the last year, all over the world, what do you think is the future of renewable energy in Romania?

In terms of energy affordability and prices, the previous volatile context has and will continue to influence strategic decisions for most energy/ gas players for which an even major challenge is that of balancing the flexibility imposed by the context with the rigour imposed by the complexity of the business.

As long as the regulatory frame is predictable and the dialogue between authorities and major investors in the field is open, transparent, and productive, the investment appetite for renewable in Romania, or the energy grid will remain stable.

The first edition of the "Oltenia Marathon" took place in 2013. Will you continue this project this year? How much money was donated in the 10 years through this initiative?

Oltenia Marathon is a tradition for us as well as the local community in Valcea and the people who love cycling and running in nature and has been so for 10 editions.

We already launched the 11th MO edition at the beginning of April under the slogan: be 1 with sport, 1 with nature, as we encourage the public to exercise outdoors and be more mindful of the environment and the surroundings.

Although it's common knowledge that running and cycling are two of the greenest sports in the world, with minimal impact on nature, the reality is that any activity leaves a footprint on the environment. Even a sports event that gives #EnergyForWellbeing to the community.

Registrations for Oltenia Marathon 2023 are still open for the already established physical competitions, which will take place in Ramnicu Valcea on 26-27 August 2023: cycling races: 22 km and 33 km; trail run races: 12 km and 22 km.

In addition, children will also have dedicated running races in Zavoi Park on 27 August and races are also available in the event's virtual format for those who want to run and cycle anytime and from anywhere, subject to 100 places being available.

The race for people with disabilities is only available in a virtual format. Registration is, as always, free of charge, subject to a limit of 20 places.

In the first 10 years of the Oltenia Marathon, more than 5,760 people enjoyed their favourite sport and with their support, CEZ Romania donated more than €137,000 to the local community.

As per usual, the amounts obtained from the registration fees of the participants will be doubled and donated by CEZ Romania to the social causes of the 11th edition of #MO which will benefit children.

News about Oltenia Marathon 2023, as well as recommendations for participants and experiences from previous years, can be found on the event's Facebook page, as well as the mobile app. that can be downloaded from Google Play or App Store.

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