《意昂集團（E.ON）2023年綜合報告（英文版）（299頁）.pdf》由會員分享，可在線閱讀，更多相關《意昂集團（E.ON）2023年綜合報告（英文版）（299頁）.pdf（299頁珍藏版）》請在三個皮匠報告上搜索。

1、Integrated Annual Report 2023 Contents Search Back 2 E.ON Integrated Annual Report 2023We are the playmaker of change in the energy industry.Leading the way in innovative,sustainable,digital-first solutions that transform the way Europe is powered for all.Contents Search Back 3 E.ON Integrated Annua

2、l Report 2023 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 c

3、an 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 Solution

4、s 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 po

5、wer 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 compan

6、ies 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 networ

7、ks and energy infrastructure and providers of innovative customer solutions.The contribution of our roughly 75,000 employees is therefore crucial to successfully propelling the energy transition in Europe.About E.ON Contents Search Back 4 E.ON Integrated Annual Report 2023 Business Highlights 5 To O

8、ur Investors 14 Combined Group Management Report 26 Corporate Profile 29 Climate Protection and Environmental Management 40 Employees and Society 55 Governance 74 Sustainable Finance and Investment 85 Business Report 94 Forecast Report 118 Risks and Chances Report 120 Disclosures Pursuant to Section

9、 289,Paragraph 4,and Section 315,Paragraph 4 of the German Commercial Code on the Internal Control System for the Accounting Process 128 Disclosures Pursuant to Section 289a and Section 315a of the German Commercial Code and Explanatory Report 131 Consolidated Financial Statements 133 Consolidated S

10、tatement of Income 134 Consolidated Statement of Recognized Income and Expenses 135 Consolidated Balance Sheets 136 Consolidated Statement of Cash Flows 138 Consolidated Statement of Changes in Equity 140 Notes 142 Other Information 249 Declaration of the Board of Management 250 Independent auditors

11、 report 251 Independent Assurance Practitioners Report 257 Boards 260 Summary of Financial Highlights 264 Task Force on Climate-related Financial Disclosures(“TCFD”)266 ESG Figures 267 EU Taxonomy 272 Global Reporting Initiative(“GRI”)Index 285 Non-Financial Statement(“NFS”)Index 291 Sustainable Dev

12、elopment Goals(“SDG”)-Index 292 Sustainable Accounting Standards Board(“SASB”)Index 293 Financial Calendar and Imprint 299 Contents Search Back 5 E.ON Integrated Annual Report 2023 Investment tempo accelerated and a total of 6.4 billion invested in 2023 E.ON successfully continued growth path in 202

13、3 and surpassed forecast in part owing to temporary effects,posting adjusted EBITDA of 9.4 billion and adjusted net income of 3.1 billion for the 2023 financial year Outlook for the 2024 financial year:adjusted EBITDA of 8.8 and 9.0 billion and adjusted net income of 2.8 and 3.0 billion anticipated

14、Dividend of 0.53 per share proposed for the 2023 financial year,a year-on-year increase of 4 percent Debt factor of 4.0 at year-end 2023 significantly below the maximum figure of 5.0 Business Highlights Contents Search Back 6 E.ON Integrated Annual Report 2023 How We Create Value The following overv

15、iew 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 is guided

16、 by the International Integrated Reporting Councils(“IIRC”)framework.Contents Search Back 7 E.ON Integrated Annual Report 2023 How We Make an Impact Contents Search Back 8 E.ON Integrated Annual Report 2023Key Performance Indicators Financial Contents Search Back 9 E.ON Integrated Annual Report 2023

17、 Key Figures of the E.ON Group Financial 1Adjusted for non-operating effects.2The figure for asset-retirement obligations at December 31,2023,does not fully correspond to the figure shown in the Consolidated Balance Sheets.This is because economic net debt is calculated in part based on the actual a

18、mount of E.ONs obligations.The figure at December 31,2022,corresponded to the figure shown in the Consolidated Balance Sheets.3Change in percentage points.4Attributable to shareholders of E.ON SE.5Based on shares outstanding(weighted average).6For the respective financial year;the 2023 figure repres

19、ents managements dividend proposal.Financial Figures in millions 2023 2022 +/-%Sales 93,686 115,660 -19 Adjusted EBITDA1 9,370 8,059 16 Regulated business(%)70 66 6 Quasi-regulated and long-term contracted business(%)3 4 -25 Merchant business(%)27 30 -10 Adjusted EBIT1 6,387 5,197 23 Net income/loss

20、 760 2,242 -66 Net income/loss attributable to shareholders of E.ON SE 517 1,831 -72 Adjusted net income1 3,068 2,728 12 Investments 6,421 4,753 35 Cash provided by operating activities 5,654 10,045 -44 Cash provided by operating activities before interest and taxes 7,225 11,511 -37 Economic net deb

21、t(at year-end)2 37,691 32,742 15 Debt factor2 4.0 4.1 -2 Credit rating S&P BBB BBB 0 Credit rating Moodys Baa2 Baa2 0 Credit rating Fitch BBB+BBB+0 Average capital employed 59,895 58,760 2 Equity 19,970 21,867 -9 Total assets 113,506 134,009 -15 Cash Conversion Rate(%)80 151 -47 3 ROCE(%)10.7 8.8 22

22、 3 Earnings per share4,5()0.20 0.70 -71 Adjusted net income per share4,5()1.18 1.05 12 Dividend per share6()0.53 0.51 4 Dividend payout 1,384 1,331 4 Contents Search Back 10 E.ON Integrated Annual Report 2023 Key Performance Indicators Sustainability Contents Search Back 11 E.ON Integrated Annual Re

23、port 2023 Key Figures of the E.ON Group Sustainability 1Proportion of taxonomy-aligned capex,opex,and sales relative to taxonomy-eligible activities.2This KPI quantifies the avoided emissions that contribute to a low-carbon economy in connection with our customers,assets,and solutions.3The proportio

24、n of renewables capacity calculated as a percentage of the total sum of all installed generating capacity.4Number of employees does not include apprentices,working students,or interns.5Serious incidents and fatalities(SIF)among employees:safety incidents per million hours of work.6Lost time injury f

25、requency(LTIF)measures work-related accidents resulting in lost time per million hours of work.7Average number of formal training hours per employee per year.8System average interruption duration index(SAIDI)for power.9Refers to shareholder representatives.Sustainability Figures 2023 2022 Environmen

26、t CO2 emissions:Scope 1(millions of metric tons)2.01 2.88 Scope 2(millions of metric tons)(location-based)3.46 3.38 Scope 3(millions of metric tons)(market-based)65.23 82.58 EU taxonomy aligned capex(%)1 98 98 EU taxonomy aligned opex(%)1 98 97 EU taxonomy aligned sales(%)1 97 97 Avoided CO2 emissio

27、ns together with our customers(millions of metric tons)2 106 108 Share of renewable generation plants connected to E.ONs power grid(%)3 86 85 Ecological network corridor management(%)12 8 Number of smart energy meter installations(thousands)13,803 12,178 Number of smart heat meter installations(thou

28、sands)94 n.a.Number of charging points sold by E.ON 23,923 20,417 Green power as a proportion of total power sales(%)54 44 Social Employees of the E.ON Group(at year-end)4 74,618 71,613 Proportion of women(%)32 31 Average age of employees 42 42 Serious incidents and fatalities(SIF)among employees5 0

29、.03 0.04 Lost time injury frequency(LTIF)among employees6 2.2 2.1 Proportion of women executives(%)24 23 People development(hours per employee)7 22.0 18.2 System average interruption duration index(SAIDI)(minutes)8 Germany 21 24 Sweden 156 121 Czech Republic 253 451 Community contribution(in million

30、s)22 18 Volunteer activities of E.ON employees(number of volunteer hours)22,129 13,340 Governance Proportion of women on the Supervisory Board(%)9 38 30 Proportion of independent Supervisory Board members(%)100 100 ESG targets included in Management Board compensation Contents Search Back 12 E.ON In

31、tegrated Annual Report 2023Key Performance Indicators Energy Networks Contents Search Back 13 E.ON Integrated Annual Report 2023 Key Performance Indicators Customer Solutions Contents Search Back 14 E.ON Integrated Annual Report 2023 Good Reasons to Invest in E.ON StockEnergy Networks Long-term gree

32、n growth in a regulated environment Multi-decade growth opportunities from the green energy transition and a regulated business nature provide for a visible and profitable earnings path Energy Infrastructure Solutions Growth acceleration from contracted infrastructure Best-in-class infrastructure po

33、rtfolio capitalizing upon decarbonization needs for cities and industries Energy Retail Attractive returns and reliable cash generation Healthy cash flows from a diversified and capital light business.Leveraging customer base to grow a solutions portfolio addressing the rising demand for electrifica

34、tion Strategic Foundation Digitalization and sustainability as strategic backbones Pioneering the digital transformation of the energy sector and applying strict sustainability criteria as the core foundation for steering the Company Financial strategy Focus on value-creation and shareholder returns

35、 Clear value-creation focus and solid financial headroom ensuring an attractive shareholder return outlook including dividends and earnings growth To Our Investors To Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Supervisory Board 15 E.ON Integrated Annual Re

36、port 2023 To Our Investors E.ON on the Capital Market Wars and Crises Affect Capital Markets E.ON stocks value performance at the end of 2023 had improved by 30 percent relative to its year-end closing price for 2022,thereby outperforming the DAX index of blue-chip German stocks(20 percent)and also

37、its European peer index,the Euro Stoxx 600 Utilities(12 percent).On December 29,2023,E.ON stock closed the year at a price of 12.15 compared with 9.33 at year-end 2022.High inflation,prime interest rate hikes along with concerns about more interest rate increases,economic uncertainty,the ongoing war

38、 in Ukraine,and the escalation of the Middle East conflict had a significant impact on the performance of European and German stocks in 2023.Continuous Dividend Growth At the 2024 Annual Shareholders Meeting on May 16,2024,the Management Board and Supervisory Board will propose paying out a cash div

39、idend of 0.53 per share for the 2023 financial year(prior year:0.51).Based on E.ON stocks year-end 2023 closing price,the dividend yield is 4 percent.The payout ratio(as a percentage of adjusted net income)is 45 percent.Our dividend policy aims to offer our shareholders attractive dividend growth of

40、 up to 5 percent annually.E.ON Stock Key Figures Per share()2023 2022 Dividend1 0.53 0.51 Dividend payout1(in millions)1,384 1,331 Twelve-month high2 12.63 12.38 Twelve-month low2 9.47 7.41 Year-end closing price2 12.15 9.33 Market capitalization3(in billions)33.77 24.65 1For the respective financia

41、l year;the 2023 figure represents managements dividend proposal.2Source:NASDAQ.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 16 E.ON Integrated Annual Report 2023 Broad International Inves

42、tor Base The most recent survey at year-end 2023 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

43、 Represented on Numerous 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

44、DAX and other indices 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

45、and hold it in the 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 Symbols and Identificati

46、on 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 Identification Numbers Germany ENAG99 International Securities Identification Number(ISIN)DE000ENAG999 To Our Investors Content

47、s Search Back E.ON on the Capital Market CEO Letter Report of the Supervisory Board 17 E.ON Integrated Annual Report 2023 Ongoing Investor Communications Our investor relations continue to be founded on four principles:openness,continuity,credibility,and equal treatment of all our investors.Our miss

48、ion 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 investor relations.The subsiding of the Covid-19 pandemic enabled us to carry out a significant part of our

49、 investor relations activities in 2022 in person.A hybrid approach of virtual and in-person activities has proven to be effective.This helps us communicate with capital markets efficiently and purposefully and meet our investors needs.Foresightful Funding,Stable Credit Rating Debt capital represents

50、 a very 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,the credit ratings of Standard&Poors,Moodys,and Fitch remained stable,reflecting the confidence in E.ONs creditworthiness an

51、d thus supporting its competitiveness for future financing activities.E.ON issued euro-denominated bonds totaling 3.3 billion in the 2023 financial year and,at year-end 2023,had a solid funding situation that serves in part as prefinancing for the 2024 financial year.In addition,E.ON continually aim

52、s 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.This periodically exploring opportunities for issuing bonds in other currencies.E.ON has a 10 billion Commercial Paper(“CP“)program and a US$10 billion CP program

53、,under which it can issue short-term notes.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 Green Bond Framew

54、ork,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 sustainable,thereby settin

55、g 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.Green bonds accounted for about 75 percent of total bond financing of just under 2.5 billion in 2023.We provide detailed information on the t

56、opic of financing in the Financial Situation chapter.Contents Search Back 18 E.ON Integrated Annual Report 2023The E.ON Management Board The Management Board manages the Companys business,with all its members bearing joint responsibility.It determines E.ONs corporate objectives,fundamental strategic

57、 course,corporate policy,and organizational setup.From left to right:Marc Spieker Chief Financial Officer Victoria Ossadnik Chief Operating Officer Digital Thomas Knig Chief Operating Officer Networks Patrick Lammers Chief Operating Officer Commercial Leonhard Birnbaum Chief Executive Officer To Our

58、 Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Supervisory Board 19 E.ON Integrated Annual Report 2023 CEO LetterDear Shareholders and Friends of E.ON,When I became CEO three years ago,I predicated a decade of growth.A lot has happened since then:the Covid pandem

59、ic,natural and climate disasters at many E.ON locations around Europe,the war in Ukraine and the attendant energy crisis,the uptick in interest rates,and Europes economic downturn.All of this has presented us with enormous challenges.But none of it has altered our solid growth prospects.On the contr

60、ary,in 2023 we again defied difficult circumstances.We again delivered strong earnings9.4 billion in Group adjusted EBITDAthat exceeded our expectations for the 2023 financial year.And we again recorded growth in our financial results and investments.Our growth strategy,which is propelled by the tre

61、nd toward sustainability and the need for full digitalization,remains valid.Our billions of euros of investments in the energy transition enable us to provide what Europe needs now more than ever:new energy infrastructure for sustainable,secure,and affordable energy.Renewables expansion is happening

62、 worldwide and in all types of locations.In France despite nuclear power.In Poland despite hard coal.In Asia despite the simultaneous expansion of conventional generation.In southern states of the USA despite the fact that climate action is almost a dirty word there.Part one of the transition is the

63、refore well advanced and continues to progress inexorably.But part two is still almost at the beginning.The transition is no longer just about big wind and solar farms.Its about solutions for decarbonizing households and industry that,after the experiences of the energy crisis,are increasingly consi

64、dered to be safeguards for a stable and affordable energy supply.Its about electrifying transportation and heating and air conditioning systems for buildings.And all of this requires network connections and a global expansion and upgrade of existing networks.The IEAs most recent World Energy Outlook

65、 predicts that global network infrastructure will need to be doubled.We strategically aligned E.ON to precisely these needs.And we increasingly benefit from them.In the 2023 financial year,our two core segmentsEnergy Networks and Customer Solutionsgrew in almost all of our European markets relative

66、to the prior year.Were investing even more and even faster in the energy transition.Well again massively expand our planned investments for 20242028 to a total of 42 billion compared with the 21 billion wed planned for the five years starting in 2021.Leonhard Birnbaum Management Board Chairman and C

67、EO To Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Supervisory Board 20 E.ON Integrated Annual Report 2023All of this fills us with optimism and with completely new self-confidence regarding our future business development.After all,the network business in p

68、articular has metamorphized in recent years.It has become a growth business thats increasingly attracting the attention of policymakers,the general public,and investors.For good reason:our networks are critical for the energy transition.The final weeks of the 2023 calendar year almost marked somethi

69、ng of a turning point in this regard.First,the European Commission adopted a Grid Action Plan,thereby putting grid expansion at the top of its energy transition agendasomething that would have been unthinkable just a few years ago.Second,just before Christmas,European policymakers also agreed on a c

70、onstructive reform of Europes electricity market design.All calls for more government intervention were met with a clear and correct message:the key to a sustainable,reliable,and affordable energy future is private investment.And in particular this means investments in network infrastructure and dec

71、arbonization solutions like those made by E.ON,one of Europes leading companies in this area.I consider this to be a great opportunity for our Group.And we want to seize it by making our leading role in the energy transition even more visible.In the interests of our customers,in the interests of our

72、 shareholders,and in the interests of society at large.This means that well continue to invest to satisfy the rising demand for energy infrastructure.But it also means that well lead the way where others hesitatelike in the promising area of network flexibility.And it also means that in the future o

73、ur corporate image will change.Weve purposely not rebranded E.ON during the Groups recent years of fundamental changes and restructuring.But if not now,when?We think its time for our brand image to reflect our central role and our new self-confidence.And thats why we on the Management Board have mad

74、e the unanimous decision to align the E.ON brand with our future growth and our leadership ambitions in the energy world.These days,the public is getting to know E.ON in a new guise and with clear ambitions that go far beyond marketing.Were showing who we want to be:the playmaker of Europes energy t

75、ransition.And well do what a playmaker does:shape the game.Best wishes,Leo BirnbaumTo Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Supervisory Board Report of the Supervisory Board Dear Shareholders,2023 was a special year for E.ON.The transformation of Euro

76、pes energy system in the wake of Russias war of aggression against Ukraine continued to gain pace.E.ON played a key role in it.In a continued volatile market environment,it was necessary to reaffirm the implementation of E.ONs growth strategy and the accompanying significant investments in network e

77、xpansion and decarbonization solutions.The energy industry will be where growth happens in the year ahead.This entails an obligation as well:realizing this growth potential is what will make E.ON successful.The Supervisory Board would like to thank the Management Board and all employees for the spec

78、ial efforts they made last year.In the 2023 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

79、monitored the Management Boards activities,assuring itself that the Companys management was legal,purposeful,and orderly.At five regular meetings it addressed all issues relevant to the Company.In addition,it carried out one written resolution procedure.On a regular basis,the shareholder representat

80、ives and employee representatives made separate preparations for these meetings with the participation of one or several members of the Management Board.Three members were each unable to attend one Supervisory Board meeting;otherwise,all members attended all meetings.The Management Board regularly p

81、rovided the Supervisory Board with timely and comprehensive 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 re

82、ports,motions,and proposed resolutions.After thoroughly examining 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 Superv

83、isory Board also met on a recurring basis without the Management Board being present.Erich Clementi Chairman of the Supervisory Board E.ON Integrated Annual Report 202321 To Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Supervisory Board In addition,there was

84、 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 Supervisory Board was kept informed at all times.He li

85、kewise maintained contact with the members of the Supervisory Board outside of board meetings.All meetings 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.Th

86、is was made use of in some instances.Implementation of E.ONs Growth Strategy In the 2023 financial year,the Supervisory Board fulfilled discussed E.ONs strategic direction with the Management Board,in particular in view of the altered geopolitical and regulatory situations.The Management Board the m

87、embers of the Supervisory Board were in agreement regarding the measures presented by the Management Board.In addition,the Management Board informed the Supervisory Board on an ongoing basis about growth projects and the development of innovative growth businesses.Key Topics of the Supervisory Board

88、s Discussions Policy developments in Germany and Europe formed a key topic of the Supervisory Boards deliberations.The principle developments in to Germany were implementation of the Building Energy Act and the Heat Planning Act as well as changes to the regulatory environment.The reform of the EUs

89、electricity market design was also a regular topic of discussion.Furthermore,the Supervisory Board dealt in detail with the price performance of E.ON stock,in particular regarding additional potential for value enhancement and growth opportunities,as well as E.ONs positioning on the capital market.I

90、n the context of the Groups operating business,the Supervisory Board addressed at length how the calmer situation on wholesale commodity markets affects E.ON as well as the business situation of the Group and its companies.It discussed E.ON SEs and the E.ON Groups asset,financial,and earnings situat

91、ion,dividend policy,workforce developments,and earnings opportunities and risks.The Supervisory Board and the Management Board Overview of the Attendance of Supervisory Board Members at Meetings of the Supervisory Board and Its Committees in the 2023 financial year Supervisory Board membersSuperviso

92、ry BoardExecutive CommitteeAudit and Risk CommitteeInnovation and Sustainability Committee Nomination Committee Clementi,Erich 5/5 4/4-1/11 2/2 Kley,Karl-Ludwig(until May 17,2023)2/22/22-2/2Frhlich,Klaus 4/51-4/4-Grillo,Ulrich 5/5 4/4 2/22-Groth,Anke 5/51-4/41,4-Petit,Nadge(since May 17,2023)3/3-2/2

93、3-Schmitz,Andreas 5/5-4/4 3/31 1/11 Schmitz,Rolf Martin 5/5 2/23-1/11-Segundo,Karen de(until May 17,2023)1/2-1/222/2Wilkens,Deborah 5/5-4/4 3/31-Woste,Ewald(until May 17,2023)2/2-1/22-Schmitz,Christoph 4/5 4/4-Bauer,Katja 5/5-1/23 2/21-Luha,Eugen-Gheorghe 5/5-2/22-May,Stefan 5/51-3/4-Pelouch,Mirosla

94、v(until May 17,2023)2/2-2/22-Pinczsn Mrton,Szilvia5/5-Phls,Ren 5/5 2/23 4/4-Schulz,Fred(until May 17,2023)2/2 2/22 2/22-Wallbaum,Elisabeth 5/51-4/4-Winterweber,Axel 5/5 4/41-2/23-1Participation(s)as a guest.2Committee member until May 17,2023.3Committee member since May 17,2023.4Committee member sin

95、ce June 5,2023.E.ON Integrated Annual Report 202322 To Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Supervisory Board thoroughly discussed the E.ON Groups medium-term plan for 2024 to 2026.The Supervisory Board was provided with information on a regular basi

96、s 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.Finally,the Supervisory Board resolved to extend Dr.Victoria Ossadniks appointmen

97、t as a Management Board member.Furthermore,it decided in mutual agreement with Patrick Lammers not to extend his appointment.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 wi

98、th the recommendations of the“Government Commission German Corporate Governance Code”dated April 28,2022,published by the Federal Ministry of Justice in the official section of the Federal Gazette(Bundesanzeiger)on June 27,2022,since the last declaration in December 2022.The Supervisory Board and th

99、e Management Board also declared that E.ON has been in full compliance 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(Bundes

100、anzeiger)on June 27,2022.The current version of the declaration 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 road show.In

101、accordance with E.ON SEs Articles of Association,the Management Board is authorized to provide that Annual Shareholders Meetings held on or before June 30,2025,may be held without the physical presence of shareholders or their proxies at the venue of the Annual Shareholders Meeting.The decision on t

102、he format of the Annual Shareholders Meeting will be made annually.Deliberations focus in particular on safeguarding shareholder rights.Aspects such as the agenda,energy and resource consumption,and process security are taken into account as well.On this basis,the 2024 Annual Shareholders Meeting wi

103、ll again take place in a virtual format.In the 2023 financial year,one member of the Innovation and Sustainability Committee had a potential conflict of interest(in relation to an agenda item regarding E.ONs operating business)due to another directorship.For precautionary reasons,the member did not

104、participate in the committees resolution.Otherwise,the Supervisory Board is aware of no indications of conflicts of interest involving members of the Management Board or Supervisory Board in the 2023 financial year.Education and training sessions on selected issues of E.ONs business were conducted f

105、or Supervisory Board members in the 2022 financial year.The key policy and regulatory developments in the regions in which E.ON operates and their implications for E.ONs energy networks business were explained to the Supervisory Board at an information event.In addition,the Supervisory Board was giv

106、en a practical presentation of the challenges posed by increasingly digitalized network control technology resulting from extensive network expansion.E.ONs British customer solutions business was presented in detail and the decarbonization of the energy and heat supply was explained at a meeting hel

107、d in the United Kingdom.The targets for the Supervisory Boards composition,including a competency 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 implemen

108、tation of the competency profile in the form of a qualifications matrix are available in the Corporate Governance Declaration.Committee Work To fulfill its duties carefully and efficiently,the Supervisory Board has created committees.The Executive Committee held four regular meetings in the 2023 fin

109、ancial year.All members took part in all of the committees meetings.At its meetings,the committee,in particular,addressed current developments in conjunction with the transformation of Europes energy system and the associated policy and regulatory changes.Additionally,the Executive Committee dealt w

110、ith the Management Boards compensation,including the achievement of Management Board targets for 2023 and the setting of the targets for 2024.In addition,the Executive Committee did preparatory work for the resolutions relating to personnel matters on the Management Board.Furthermore,the Executive C

111、ommittee thoroughly discussed the strategy review.E.ON Integrated Annual Report 202323 To Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Supervisory Board The Innovation and Sustainability Committee met three times.Three members were unable to attend one meeti

112、ng each.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 sustainability rankings and the external perception of E.ON with regard to sustaina

113、bility.The further development of various new customer solutions businesses was the topic of extensive discussions as well.The Audit and Risk Committee met four times in 2023.One member was unable to attend one meeting,Otherwise,all members attended all meetings.The committee conducted a thorough re

114、view,in particular of the 2021 Financial Statements of E.ON SE(prepared in accordance with the German Commercial Code),the E.ON Groups 2022 Consolidated Financial Statements(prepared in accordance with International Financial Reporting Standards,or“IFRS”),and the 2023 intermediate financial reports

115、of E.ON SE.The committee discussed the recommendation for selecting an independent auditor for the 2023 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 audit

116、ors 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 th

117、at 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,t

118、ransactions 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 prepared the relevant recommendations for the Supervisory Board and reported them to the Super

119、visory Board.On the basis of the quarterly risk reports,the committee noted that no risks were identified that might jeopardize the existence of the Group or individual segments.Furthermore,the committee addressed in detail the implications and the management of the energy crisis,occupational safety

120、,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 Risk Committee and the independent auditor throughout the financial year.The Nomination Committee met twice.At these meetings,it did preparatory work

121、for the Supervisory Boards election proposal to the 2023 Annual Shareholders Meeting for the shareholder representatives on the Supervisory Board of E.ON SE.When proposing candidates to the Supervisory Board,the Nomination Committee took into account the requirements of the German Stock Corporation

122、Act,the German Corporate Governance Code,and the Supervisory Boards rules and procedures as well as the objectives that the Supervisory Board resolved for its composition.The committee thus ensured that Supervisory Board members and the board as a whole have the knowledge,skills,and professional exp

123、erience required to properly perform their duties.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 and responsibilities is in the Corporate Governance Declarati

124、on.Examination and Approval of the Financial Statements,Approval of the Consolidated Financial Statements,Proposal for Profit Appropriation for the Year Ended December 31,2023 KPMG AG,Wirtschaftsprfungsgesellschaft,Dsseldorf(“KPMG”),audited and submitted an unqualified auditors and/or audit opinion

125、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 December 31,2023.KPMG AG Wirtschaftsprfungsgesellschaft was elec

126、ted as Group auditor by the Annual Shareholders Meeting on May 17,2023,and has been E.ON SEs independent auditor without interruption since the 2021 financial year.The auditor responsible at KPMG AG Wirtschaftsprfungsgesellschaft is Gereon Lurweg,who is performing this function for the third time.Th

127、e 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 12,2024,thoroughly discussedin the presence of the independent auditor and

128、 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 Management Report as

129、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 and approved the

130、Independent Auditors Report.E.ON Integrated Annual Report 202324 To Our Investors Contents Search Back E.ON on the Capital Market CEO Letter Report of the Supervisory Board The Supervisory Board also examined the sustainability reporting consisting of the combined Non-Financial Statement and additio

131、nal sustainability information which is integrated into the Combined Group Management Report.KPMG also audited the Non-Financial Statement and selected additional sustainability information and issued an unqualified opinion.The disclosures were subjected to a limited assurance engagement by KPMG;sel

132、ected disclosures were audited with reasonable assurance.Following the final result of its examination,the Supervisory Board raised no objections to the integrated sustainability reporting,including the Non-Financial Statement.On March 12,2024,the Supervisory Board approved the Financial Statements

133、of E.ON SE prepared by the Management Board and the Consolidated Financial Statements.The Financial Statements are thus adopted.The Supervisory Board agrees with the Combined Group Management Report and,in particular,with its statements concerning the Companys future development.The Supervisory Boar

134、d examined the Management Boards proposal for profit appropriation,which includes a cash dividend of 0.53 per ordinary share,also taking into consideration the Companys liquidity and its finance and investment plans.After examining and weighing all arguments,the Supervisory Board agrees with the Man

135、agement Boards proposal for profit appropriation.Personnel Changes on the Supervisory Board The previous Supervisory Board members term of service ended at the Annual Shareholders Meeting on May 17,2023.New elections were therefore held.At the same time,a new Supervisory Board size of 16 membersfor

136、a limited period through the 2028 Annual Shareholders Meetingwas resolved.With the exception of Karl-Ludwig Kley,Karen de Segundo and Ewald Woste on the shareholder side and Fred Schulz and Miroslav Pelouch on the employee side,all previous Supervisory Board members were reelected or reappointed.Nad

137、ge Petit was newly elected to the Supervisory Board on the shareholder side.On the employee representatives side,effective January 1,2024,Frank Werneke succeeded Christoph Schmitz,who ended his service on the Supervisory Board on December 31,2023.Erich Clementi has been the new Supervisory Board Cha

138、irman since May 17,2023,succeeding Karl-Ludwig Kley.Pages 260 and 261 of the Integrated Annual Report provide an overview of all members of the Supervisory Board.Essen,March 12,2024 The Supervisory Board Best wishes,Erich Clementi Chairman E.ON Integrated Annual Report 202325 Contents Search Back 26

139、 E.ON Integrated Annual Report 2023 Corporate Profile 29 Business Model 29 ESG Materiality and Stakeholder Engagement 29 Strategy 32 Innovation 36 Management Control System 38 Climate Protection and Environmental Management 40 Climate Protection 40 Environmental Management 47 Sustainable Products an

140、d Services 52 Employees and Society 55 Occupational Health and Safety 55 Working Conditions and Employee Development 59 Customer Satisfaction 64 Security of Supply 66 Community Involvement 69 Data Protection,Cybersecurity,and Product Safety 70 Business Resilience Management 72 Governance 74 Complian

141、ce and Anticorruption 74 Energy Affordability 76 Diversity and Inclusion 78 Human Rights and Supply Chain Management 80 Tax 83 Sustainable Finance and Investment 85 EU Taxonomy 85 Sustainable Finance 93 ESG Ratings of E.ON 93 ESG Asset Management and Pension Assets 93 Business Report 94 Macroeconomi

142、c and Industry Environment 94 Special Events in the Reporting Period 99 Subsequent Events 100 Business Performance 101 Energy Networks 102 Customer Solutions 103 Earnings Situation 105 Financial Situation 111 Asset Situation 115 E.ON SEs Earnings,Financial,and Asset Situation 116 Forecast Report 118

143、 Risks and Chances Report 120 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 128 Disclosures Pursuant to Section 289a and Section 315a of the German Commercial Code and Explanatory Re

144、port 131 Combined Group Management Report 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 C

145、ontrol System Disclosures Regarding Takeovers 27 E.ON Integrated Annual Report 2023 About This Report GRI 2-2,GRI 2-3,GRI 2-4,GRI 2-5,GRI 2-6 For the 2023 reporting year,E.ON has again published an Integrated Annual Report that combines financial and non-financial reporting.The reason is that sustai

146、nability 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 Annual Report applies to the E.ON Group

147、as well as E.ON 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 Sections 315b

148、 and 315c in conjunction 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

149、 also complies with the disclosure requirements of the EU Taxonomy Regulation.The Non-Financial Statement(“NFS”)Index indicates where these disclosures can be found in the Integrated Annual Report.In addition,the Disclosures Regarding Takeovers chapter is integrated into the Annual Report.E.ONs sust

150、ainability 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 to the GRI Standards 2021 by the Global Reporting Initiative.The GRI standards covered by

151、 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 Generators Standards issued by the Sustainability Accounting Standards Board(“SASB”).E.ON is

152、 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 chapter.Our climate-related reporting,which is based on the recommendations of the Task Force o

153、n Climate-related Financial Disclosures(“TCFD”)as well,can be found in the chapter Climate Protection.Scope This report encompasses all subsidiaries that are fully consolidated in E.ONs Consolidated Financial Statements 2023.Any deviations are marked accordingly.KPI-based thresholds are used to dist

154、inguish 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 2023 calendar year.For most KPIs the corresponding prior-year figure is provided to improve

155、 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 reporting.Actual results may deviate from these statements.The Corporate Governance Decla

156、ration is published on our website in the section Corporate Governance.The Integrated Annual Report was published on March 13,2024,and is available in German and English in pdf format.You can download the pdf version of this report at .The previous Integrated Annual Report was published in March 202

157、3.You can find it and additional reports in the investor relations archive.Language To improve readability,we generally use the shorter name for companies and organizations(such as“E.ON”rather than“E.ON SE”).Sustainability Ratings E.ONs commitment to transparency includes subjecting its sustainabili

158、ty 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 weaknesses and further improve our performance.The Sustainable Finance

159、chapter presents the results of sustainability ratings.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 Repo

160、rt Internal Control System Disclosures Regarding Takeovers 28 E.ON Integrated Annual Report 2023 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 of the Consolidated Financia

161、l 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 accordance with the International Sta

162、ndard 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 until the next heading of the

163、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.In addition,individual secti

164、ons 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.Not part of the statutory audit

165、,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 from the prior year included i

166、n sections marked as audited are,in principle,audited with the same degree of assurance as for the 2023 reporting year.Figures for 2021 were audited with limited assurance.Any deviations are indicated.The precise scope of the audit is described in the Other Information section in the Independent Aud

167、itors Report and in the report on the management review of sustainability information.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 Forecas

168、t Report Risks and Chances Report Internal Control System Disclosures Regarding Takeovers 29 E.ON Integrated Annual Report 2023 Corporate Profile Business Model E.ON is an investor-owned energy company with approximately 74,600 employees led by Corporate Functions in Essen.The Groups core business i

169、s divided into two segments:Energy Networks and Customer Solutions.Corporate functions,equity interests managed directly by E.ON SE,and non-strategic operations are reported under Corporate Functions/Other.Corporate Functions Corporate Functions main task is to lead the E.ON Group.This involves char

170、ting 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,conducting stakeholder management,and managing E.ON Energy Markets Gmb

171、H(“E.ON Energy Markets”),the Companys central commodity procurement unit.The E.ON Groups non-strategic activities,such as the operation of nuclear power stations until April 15,2023,and their dismantling(managed by the PreussenElektra unit)and the generation business in Turkey are reported here as w

172、ell.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 Enerj

173、isa 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 connect

174、ions 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,and heat,and providing them wi

175、th 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,and public entities.The E.ON Groups m

176、ain 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 aimed at decarbonizing commercial custo

177、mers,cities,and communities,such as sustainable city solutions and district heating.Significant Changes to the Business Model Effective January 1,2024 Some of the Energy Network segments regional markets were reclassified effective January 1,2024.East-Central Europe/Turkey is now divided into East-C

178、entral Europe(which includes the Czech Republic,Slovakia,and Poland)and Southeastern Europe(which includes Hungary,Croatia,Romania,and our stake in Enerjisa Enerji in Turkey,which is accounted for using the equity method).In addition,the Customer Solutions segment was renamed Energy Retail.Furthermo

179、re,the Energy Infrastructure Solutions(EIS)was transferred from Energy Retail and has been an independent segment since January 1,2024.We thus now report on its activities separately.Furthermore,the E.ON Groups central commodity procurement unit,E.ON Energy Markets,is reported at Energy Retail effec

180、tive January 1,2024.It was part of Corporate Functions/Other until December 31,2023.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 identify and evaluate the sustainability topics that are most

181、important to the Company and its stakeholders.This report contains information on the topics that the materiality analysis deemed to be particularly significant.It also partially addresses less material sustainability topics.E.ON thus aims to meet the different expectations of stakeholders as well a

182、s 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 In 2023 E.ON conducted a materiality analysis in accordance with the requirements

183、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 well as the impact perspective.The process had f

184、our 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 statements from customers,competitors,investors,and non-

185、governmental organizations(“NGOs”).We used this to create an overview of possible material topics.These were then compared with our existing material topics and collated.The basis for this was an evaluation that correlates a topics frequency of mention to its importance for the industry.Experts from

186、 Sustainability,Group Accounting,and Investor Relations divisions reviewed and finally agreed on a short list of E.ONs potentially material topics.Combined Group Management Report Contents Search Back About this Report Corporate Profile Climate Protection and Environmental Management Employees and S

187、ociety Governance Sustainable Finance Business Report Forecast Report Risks and Chances Report Internal Control System Disclosures Regarding Takeovers 30 E.ON Integrated Annual Report 2023 Step Two:Impact Perspective E.ON analyzed the impact perspective by surveying NGOs,research institutes,supplier

188、s,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 Sustainability,Group Accounting,Investor Relatio

189、ns,and Group Risk functions evaluated the surveys findings in a workshop,which concluded the impact analysis.Step Three:Financial Perspective E.ON evaluated the financial perspective by examining the risks and opportunities associated with the ESG topics contained in its Enterprise Risk Management(“

190、ERM”)system.Another workshop,consisting of the same participants,was then held to assess and validate the financial materiality of the topics identified.Step Four:Materiality Threshold E.ON finalized the list of topics by defining a common materiality threshold for the impact and financial perspecti

191、ves.Only topics that exceeded it were considered material.To determine them,we held a third workshop consisting of the above-mentioned participants.The findings were then presented to the Sustainability Council,which approved E.ONs materiality analysis for 2023.The council is chaired by the Chief Su

192、stainability Officer.He reports periodically to the E.ON Management Board on progress made.Material Topics E.ONs sustainability reporting for the 2023 reporting year must for the last time reflect NFRD requirements.We therefore did not conduct a comprehensive update of our sustainability analysis pu

193、rsuant to NFRD requirements.Instead,we conducted a Group-wide materiality analysis oriented toward the European Sustainability Reporting Standards 2(“ESRS 2”)in order to prepare for our first reporting pursuant to the Corporate Sustainability Reporting Directive(“CSRD”)for the 2024 reporting year.We

194、 integrated the approval of the update of our sustainability analysis pursuant to NFRD requirements from 2022 and assessed the prior years findings to ensure they are up to date.Our CEO Leonard Birnbaum and our CFO Marc Spieker performed the final validation.The findings of our NFRD materiality anal

195、ysis for 2023,which are listed below,reaffirm the findings of the analysis from the prior year.The highest relevance from a financial and impact perspective was assigned to the following three topics:Climate-change mitigation Energy affordability Reliable energy supply The material topic of climate-

196、change mitigation also encompasses customer solutions that mitigate climate change.Since both aspectsgeneral climate-change mitigation and customer solutions that mitigate climate changeare extensive,they are presented in separate chapters in the Integrated Annual Report 2023.The ESG chapters of thi

197、s report provide information on E.ONs approach to managing its material topics and outline the Companys progress in the reporting year.The description 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

198、 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 short-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 i

199、s 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.The dialogue formats we choose vary by stakeholder and topic.They range from information campaigns and discussion forums with associations and NGOs to face-to-f

200、ace discussions and lobbying.For example,E.ON is actively involved in the global investor initiative CDP(Carbon Disclosure Project),works with 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 Co

201、alition(Lowering Emissions by Accelerating Forest Finance),which is committed to biodiversity and the protection of tropical forests.More information 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 ener

202、gy suppliers and solar companies.The Solar Stewardship Initiative(“SSI”)was set up as part of this association.Its aim is to create more transparency for solar-power supply chains and to ensure compliance with human rights.E.ON actively participates in policy debates on issues that affect the Compan

203、y.We use a variety of channels for this,including lobbying,media interviews with our executives,and their appearances as public speakers.In addition,policymakers and regulators frequently invite E.ON to provide its technical and energy expertise as part of their decision-making processes.The Company

204、 offers its expertise proactively as well.This type of advocacy is important because the energy sector is significantly influenced by policy and regulatory decisions.Energy policy discussions in Brussels and Berlin focused on a future market design for the electricity market and the necessary expans

205、ion of infrastructure.Furthermore,E.ON takes part in discussions on energy,environmental,and climate policy in a variety of other forums.For example,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

206、 Green Deal.Effective November 21,2022,Leonhard Birnbaum was appointed acting 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

207、 Risks and Chances Report Internal Control System Disclosures Regarding Takeovers 31 E.ON Integrated Annual Report 2023 president of Eurelectric,the association of the European electricity industry;he was elected president in March 2023 and has officially been in office since June 2023.Eurelectric i

208、s 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 Energy and Water Industries(German abbreviation:“BDEW”),Swedenergy,a

209、nd 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 efforts to propel the energy transition.All of E.ONs lobbying acti

210、vities and dialogue formats comply with national and European laws and guidelines on representing corporate interests and responsible lobbying.Below is an overview of E.ONs most important stakeholders,their significance for E.ON,and their expectations of E.ON.Combined Group Management Report Content

211、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 32 E.ON Integrated Annual Report 202

212、3 E.ON is a member of numerous industry networks and trade associations in individual countries and at the European level.They enable companies to share information about climate protection,customer needs,and industry trends,and to represent shared interests to policymakers and regulators.Examples o

213、f these memberships include:German Association of Energy and Water Industries(German abbreviation:“BDEW”):through the BDEW E.ON is also represented in two European trade associations,Eurelectric and Eurogas.Federation of Germany Industries(German abbreviation:“BDI”):E.ON is engaged in the BDI throug

214、h its membership in the Association of the German Interconnected Grid Systems Economy(German abbreviation:“VdV”).E.ON also supports the BDI through the Association for the Promotion of Germany Industry.BDI is a member of BusinessEurope,a European umbrella organization.German Industry Initiative for

215、Energy Efficiency(Deutsche Unternehmensinitiative Energieeffizienz,or“DENEFF”):a multi-industry network of companies and organizations dedicated to enhancing energy efficiency.Bitkom:through this industry initiative for a digital economy the Company is also represented in the Federal Association of

216、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 Forum of the SPD e.V.European Distribution System Operators for Smart Grids(“EDSO for Smart Grids”):European a

217、ssociation 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 involved in electricity production,sale,and trading in Sweden.Stakeholder Dialogue on Safe Post-Operations and Pla

218、nt Dismantling E.ON subsidiary PreussenElektra is responsible for the safe post-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 Co

219、mpany also uses events and forums to speak directly with its stakeholders and benefit from their feedback.The aim of all these measures is to provide transparent information and build trust.Dialogue remains important during NPPs dismantling as well.In 2023 PreussenElektra held press events at nearly

220、 all its NPPs.Annual power plant talks with key local stakeholders took place in the fall as well.Some plants also have dialogue groups for nearby residents,in which PreussenElektra also participated in 2023.People who live near Brokdorf,Isar,and Grafenrheinfeld NPPs and other stakeholders were give

221、n the opportunity to visit the plants on selected dates.Strategy 2023:Markets Calm Down,E.ONs Strategy Remains Right on Course Overall,the situation on energy markets in 2023 improved compared with the severe turbulence of 2022.At E.ON,we perceive this in all our regions.The tensions are still notic

222、eable,however,and our prudent planning reflects this.E.ON mastered last years challenges by consistently implementing our strategy focusing on sustainability,digitalization,and growthbecause this strategy has proven to be robust even in times of crisis.Our strategy to be and remain the green energy

223、transition company in Europe therefore remains right on course.We are the playmaker of Europes energy transition and made significant progress in 2023.The energy crisis in 2022 accelerated the energy transition by putting the need for sustainable energy systems into even sharper focus.The energy tra

224、nsition is therefore not only an urgently necessary response to climate change,but also an opportunity for Europe and Germany to simultaneously remain competitive and resilient and thus pursue a sustainable path out of the energy crisis.The policy decisions of Germanys Easter package of renewables l

225、egislation show that the emphasis on energy security and energy autonomyalong with the resilient and digital energy infrastructure it requireshas become even more important.E.ON is one of Europes largest operators of electricity and gas networks,and the growth strategy we launched in 2021 therefore

226、puts us right on track to continue propelling and ensuring supply security and multisector decarbonization.The crisis has also made us realize that we must always think about sustainability,supply security,and energy affordability together and that the maxim of E.ONs actions must be to achieve a bal

227、ance between these three requirements.Germany is part of Europes energy market.The shutdown of Germanys last nuclear power plants in April 2023 and its plan to phase out coal by 2030 make this fact increasingly important.Ensuring supply security and energy affordability can only be achieved by expan

228、ding renewables faster.Renewables expansion,in turn,promotes sustainability,but can only succeed if it is accompanied by significantly more and faster network expansion.We are also at a turning point.The energy transition is now primarily a heating transition,which already directly affects every ind

229、ividual or will do so in the future.For example,2023 was already characterized by a strong desire among customers for more autonomy and sustainability.One of the upshots of this was high demand for heat pumps.The heating transition was thus already readily apparent in 2023.Making the energy transiti

230、on a 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 Disclosures Regarding T

231、akeovers 33 E.ON Integrated Annual Report 2023 reality is one of the challenges of the decade ahead,not just for E.ON,but for Europe as a whole.We are underlining the importance of this turning point by making,from 2024 onward,our decentralized infrastructure solutions business,Energy Infrastructure

232、 Solutions(“EIS”),a strategic business unit alongside our two existing segments,Energy Networks and Customer Solutions/Energy Retail.Without the requisite expansion and digitalization of networks,the energy transition will fail.It is technically feasible,but the question is at what price.Investments

233、 in networks can only be made in a reliable and economically attractive regulatory environment.Less bureaucracy and more innovation are necessary,too.At Energy Networks,2023 was primarily characterized by organic growth and the consistent implementation of our strategy.Ongoing renewables expansion l

234、ed to a further increase in demand to connect these facilities to networks and to expand network capacity.Investments in the 2023 financial year went mainly toward network expansion and infrastructure modernization and digitalization.A significant proportion of Europes renewables capacity is connect

235、ed to the E.ON Groups grids;indeed,the one millionth renewables facility was connected to E.ONs network in Germany in October 2023.These networks are not only the backbone of the green energy transitionwhich E.ONs considerable investments continue to propelbut also one of the most critical pieces of

236、 social infrastructure.It is clear that the energy transition will not be possible without the underlying network infrastructure.The successful implementation of our growth strategy which emphasizes our promise to provide secure and affordable energy was also reflected at Customer Solutions in 2023.

237、Our dynamic management of prices,customer churn,and our portfolio made a significant contribution to stabilization after the crisis.Our focus was always on supply security,affordability,and a sustainable energy supply.Wherever it was economically feasible,E.ON always passed lower market prices throu

238、gh to households and reduced end-customer prices after the significant increases that resulted from the crisis in 2022.Overall,this too demonstrates that the strategic course we setmeasured by the high demand for intelligent solutions and products for decarbonizing households and industryremains sta

239、ble and will become increasingly important in the future.E.ONs wide range of products and services enables our customers and partners to displace over 100 million metric tons of CO2 annually.The primary feature of 2023 at our Energy Infrastructure Solutions(“EIS”)business was the obtaining of new co

240、ntracts that will enable us to offer our customers additional decarbonization solutions in the future.At our partner Imerys in Belgium,for example,we installed a generating unit that runs entirely on industrial synthesis gases that result from Imeryss production processes.The unit can supply not onl

241、y Imeryss production facility but also 40,000 households in the region with electricity year-round.In Poland we signed a contract to develop a project to generate energy from waste heat.These two projects alone will result in annual carbon savings of 81,000 metric tons per year.These kinds of assets

242、 are still lighthouse projects,but we want to make them the standard.Among other things,they make a significant contribution to the competitiveness and decarbonization of Europes economy.We therefore made tangible year-on-year progress,not only in further developing this business and growing E.ON,bu

243、t also in delivering on E.ONs ambitions to make Europes energy system more sustainable.Demand for our sustainable energy solutions is likewise continuing to rise.Not only did our Future Energy Home business record growth by offering decarbonization solutions for households,primarily in newly tapped

244、markets.Our eMobility business continued to expand by means of a Europe-wide strategic partnership with BMW for home charging as well as our acquisition of startup elvah.Elvahs app is designed to make it easier to find available,reliable,and affordable charging stations and also helps us better util

245、ize our charging network.Alongside our existing partnerships with Berlin and Malm,in 2023 we forged our first strategic energy partnership in England with the city of Coventrythe headquarters of E.ON UK plcto jointly develop and propel decarbonization as well as social projects.The pace of our digit

246、alization,which is a key success driver,is swift as well.We are digitalizing across E.ON.We defined technological standards for the entire E.ON Group in order to harmonize our IT landscape.Our common technology platform is designed to ensure our IT landscapes efficiency and reliability while maintai

247、ning a high degree of flexibility by means of a modular setup centered on an application-programming interface(“API”).This includes a continued focus on a clear cloud strategy.Using the cloud enables us to achieve greater stability and shorter recovery times,while at the same time enhancing the flex

248、ibility of our workloads performance.E.ON has migrated more than 95 percent of applications from its data centers to the cloud,and we are already seeing that the cloud makes our data landscape more stable and secure.It forms the basis for the modernization of our business processes and simplifies an

249、d accelerates the development of new digital services for the energy transition.The digitalization of our Group provides us with greater efficiency,higher security,and more flexibility for swifter scaling.In a dynamic market environment like ours,digitalization can give us a significant competitive

250、advantage.In addition,we are committed to providing our entire workforce with adequate training and development.We rolled out a new digital learning platform that provides all our employees with the skills they need to propel the digitalization of our business processes and products according to the

251、ir individual requirements.These efforts are supported by a growing core of digital experts who promote digitalization projects in all our Combined Group Management Report Contents Search Back About this Report Corporate Profile Climate Protection and Environmental Management Employees and Society G

252、overnance Sustainable Finance Business Report Forecast Report Risks and Chances Report Internal Control System Disclosures Regarding Takeovers 34 E.ON Integrated Annual Report 2023 business areas and by equipping all employees with the modern technical tools they need for their daily work.In 2023 E.

253、ON also reassigned its central innovation activities to its digital division.The new organizational setup reflects E.ONs conviction that digital innovations in particularlike Elna,a smart meter service we launched in Sweden,and Evercharge,a solution for preventing charging point outagesare key value

254、 drivers in the energy transition.These are all important steps on the path to a sustainable transformation of the energy system.It is a long-term task and requires political support and appropriate framework conditions.It is becoming increasingly clear that the energy transition has reached one of

255、its larger challenges:the heating transition.This will require considerable investments in networks and a fundamental reconfiguration of the entire infrastructure.Being an active partner to around 6,000 municipalities in Germany positions E.ON well to successfully support and implement municipal hea

256、t planning and Germanys Building Energy Act.E.ON laid the foundation stone for the energy transition in the heating sector by creating a digital heat map for municipalities and citizens,which we officially presented to the Federal Minister for Housing,Urban Development,and Construction in November 2

257、023.The use of hydrogen as a substitute for coal,gas,and oil in industry will continue to play an important role in the transformation of the energy system.Extensive investment in energy infrastructure is necessary here,too.All of this offers us new opportunities and again reaffirms E.ONs strategic

258、course.“Making new energy work”We are the playmaker of change in the energy industry.Leading the way for innovative,sustainable,digital-first solutions that transforming the way Europe is powered for all.This clear purpose send an unmistakeable message.It indicatesas our mission statement already im

259、pliesthat we will continue to emphatically implement our established strategy whose three key elements are sustainability,digitalization,and growth.Sustainability E.ONs strategy fits seamlessly with the European Unions decarbonization agenda.Europes distribution networksE.ONs biggest businessare whe

260、re the energy transition is happening.The investments necessary to upgrade,expand,and digitalize these networks through 2030 are estimated at over 425 billion.The European Commissions desire to accelerate this expansion will be an additional driver.Climate protection will be one of the key drivers o

261、f E.ONs future growth.The Science Based Targets initiative(“SBTi”)validated E.ONs climate targets in May 2022.They are consistent with keeping global warming to 1.5C above preindustrial levels.In addition,E.ON pledges for its Scope 1 and 2 emissions to achieve climate neutrality by 2040(and to cut S

262、cope 1 and 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

263、 aligned with the new energy world and E.ONs strategy.In addition,E.ON voluntarily offsets a portion of the emissions it is currently unable to avoid.Offsets help fund measures that prevent or remove carbon emissions outside our value chain.All offsets are currently not factored into E.ONs climate t

264、argets,but rather are made at the product level.E.ONs most important offsetting program is the partnership it has had since 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 LEA

265、F program will initially run through year-end 2027.ESG aspects are systematically embedded into E.ONs central control 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

266、decentralized approach enables the units to contribute to E.ONs Group-wide targets for issues like climate protection 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

267、 monitor progress toward targets.They share information at regular intervals with our Sustainability Council and the E.ON Groups Sustainability team.Digitalization Digitalization will be a cornerstone of the energy landscape of the future.The transition toward an interconnected,volatile,and networke

268、d energy world is being accompanied by increasing complexity that can only be managed through comprehensive digitalization.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 be

269、come one of the leading digital energy companies and to fundamentally transform its products,processes,and services into data-driven and highly interconnected solutions.Our digital transformation is proceeding along four strategic pathways:optimizing internal operations,engaging customers and partne

270、rs,transforming and developing new business areas,and enhancing employees 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 neces

271、sary for the energy transition now and in the future.It will enable us to develop new digital energy solutions while maintaining the highest security standards.The foundation of E.ON One has enabled the E.ON Group to pursue the objective of offering and operating innovative digital energy solutions

272、for the external market and for E.ON Group companies.E.ON Ones portfolio is 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 Combined Group Management Report Contents Search Back About this Repo

273、rt 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 Takeovers35 E.ON Integrated Annual Report 2023sustainably.E.ON One focuses

274、on three business areas:grid management,grid operations,and energy management solutions.These areas form the basis of a successful energy transition.E.ON One offers a wide range of energy management solutions that give customers more transparency about their consumption and that aims to optimize con

275、sumption and generation.Energy Networks top priorities include standardization,smartification,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

276、power from renewable generating facilities.The development of digital solutions like smart eMobility charging solutions as well as new services in front of and behind standard residential meters and smart meters are also part of E.ONs growth strategy.Growth E.ONs core business consists of two segmen

277、ts:Energy Networks and Customer Solutions.E.ON operates power and gas networks in various 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

278、 the sustainable transformation of various customers and industrial sectors.As a result,E.ONs business opportunities are expanding as well.Our growth strategy also fits seamlessly with Europes decarbonization ambitions:because of the ongoing build-out of renewables and the resulting greater challeng

279、es for power networks,systemic change in power distribution networks will,as already mentioned,require investments of more than 425 billion.According to the most recent statements by the German Federal Network Agency,about 150 billion of investments will be required for distribution networks in Germ

280、any alone.E.ONs distribution networks alone will connect several million new renewables facilities over this time period.In addition,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

281、 of the economy is necessary for this as well.E.ON is aiming for earnings growth in both the Energy Networks and Customer Solutions segments,supported by continual efficiency improvements.The focus is primarily on achieving operational excellence.We are likewise aware that our growth strategy will o

282、nly be successful if it is accompanied by changes within our organization,such as cultural change,diversity,and education.Growth in the Energy Networks Segment The transition to a new,sustainable,and interconnected energy world will require considerable investments in physical and digital assets.As

283、stated above,this applies above all to the Energy Networks segment,whose Networks are the platform for 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 ener

284、gy transition owing to changes in customer behaviour.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.Consequently,this growth will be accompanied by a s

285、uitable 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(such as smart energy meters and smart transformer station

286、s),the integration of external data,and the standardization of construction and operating processes will make it possible to realize considerable potential.Where necessary for technical reasons and economically feasible,E.ON will acquire the capability to monitor and control its distribution network

287、s across all voltage levels in order to optimize their operation.Sensors and smart metering and control technology will enable real-time control of distributed generation and consumption.The energy and heat transitions will alter the role of gas networks as well.E.ON is already working on plans,such

288、 as making gas network infrastructure hydrogen-ready.E.ON will therefore,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.This is among the reasons why E.ON is one of Europes le

289、ading distribution system operators.E.ON has a regulated asset base(“RAB”)of 42 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.A large portion of investments during the 202420

290、28 planning period will again go toward network expansion and a variety of network projects.The Forecast Report contains details about planned investments.Growth in the Customer Solutions Segment The Customer Solutions segment focuses on the offering of energy solutions(such as Future Energy Home or

291、“FEH,”eMobility,and green gas)and the decentral activities of the Energy Infrastructure Solutions(“EIS“)business,as well as power and gas sales.This is a scalable business model with comparatively low capital requirements and focuses on private households and small and medium-sized enterprises.E.ONs

292、 objective for this business is to retain its roughly 47 million customers(including customers in Turkey and at ZSE in Slovakia)in the long term by offering them sustainable energy solutions and services and thus reducing their environmental footprint and reaching energy conservation targets,particu

293、larly regarding residential customers gas consumption.So that this objective can be achieved at competitive costs,E.ON systematically pursues digitalization which promotes optimal operational efficiency,superior customer satisfaction and loyalty(customer relationship management),and cross-selling op

294、portunities.In addition,E.ON focuses primarily on offering distributed energy systems for households,such as the self-generation 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 pow

295、er capacity by 2025,remains an additional growth driver.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 Rep

296、ort Internal Control System Disclosures Regarding Takeovers 36 E.ON Integrated Annual Report 2023 The expansion of suitable eMobility infrastructure is another key strategic pillar.The eMobility market continues to undergo change and is characterized by strong growth:policymakers want at least 15 mi

297、llion electric vehicles to be registered in Germany by 2030.The time for rapid growth activities is now,because all attractive locations for the charging infrastructure necessary for this objective will presumably have been allocated in the years ahead.Our objective is to enlarge our current market

298、position and become one of Europes leading operators of charging infrastructure by 2030.In 2023 E.ON sold 23,923 charging points for residential and business customers in many European countries.EISs activities encompass innovative energy solutions that aim to help cities,municipalities,and industri

299、al customers achieve their climate targets cost-effectively.E.ON aims for its EIS business unit to achieve additional growth and become the preferred transformation partner for sustainable,innovative energy solutions.EISs core business consists of a portfolio of solutions for decentral power,heat,an

300、d cooling plants as well as solutions for energy efficiency and decarbonization along with other energy services.E.ON sees green hydrogen in particular as a key strategic growth opportunity over the medium term,and founded E.ON Hydrogen GmbH to meet rising demand for green gases in the future.Hydrog

301、en will play an essential role in the climate-neutral energy system of the future.E.ON plans to develop a national and international hydrogen business.Our international footprint in Europe gives us optimal local conditions for future hydrogen clusters,for example in the North Sea region.Selected par

302、tnerships for developing this business include,for example,French energy company EDF,Everwind Fuels,Tesla,and Fortescue Future Industries.E.ON is thus well positioned to propel the energy transition and satisfy the increasing demand for sustainable solutions.All business units benefit from robust gr

303、owth in the demand for green power and gas across all sectors(households,transportation,buildings,and industry).Commitment to the UN Sustainable Development Goals The United Nations Sustainable Development Goals(“SDGs”)of its 2030 Agenda for Sustainable Development provide a blueprint for a better a

304、nd more sustainable future.Adopted in 2015,the 17 SDGs and 169 subgoals address a wide range of global challenges.We recognize the SDGs importance.Our Management Board underscored this support by issuing a self-commitment to the SDGs in June 2018.E.ONs core business activities enable it to play a co

305、nsiderable 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 can be found in the SDG Index.Finance Strategy The section of the Combined Group Management Report entitled Financial Sit

306、uation 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 Report entitled Working Conditions and Diversity and Inclusion contain explanatory information about the main components of

307、 E.ONs people strategy as well as statements about diversity at E.ON.Innovation Innovations:Pioneering New Solutions En Route to Climate Neutrality At E.ON,we focus on innovations to develop new solutions en route to climate neutrality.They help us quickly and reliably design safe,user-friendly digi

308、tal products,processes,and systems for our Energy Networks and Customer Solutions segments as well as the E.ON organization.Our Innovation division focuses on developing new customer solutions and deploying new technologies while assessing the opportunities and possibilities as well as the risks ass

309、ociated with the use of modern technology.The public and scientific-technological debate about artificial intelligence(“AI”)and generative AI or Gen AI has led E.ON,too,to take a close look at their opportunities and risks.For example,E.ON is testing various Gen AI solutions for integrated knowledge

310、 and information flows,information on strategic trends,improved operational planning,the design and implementation of business processes,and for the creation of value for customers and employees.Collaboration in Global Networks and Partnerships Accelerates Innovations E.ON has worked in recent years

311、 to establish Group-wide structures and processes for in-house collaboration and partnerships to develop innovations.E.ON is convinced that new business models that are significant for its future business can be developed better,more easily,and faster in collaboration with universities and other sci

312、entific institutions as well as various partners and networks of a global innovation ecosystem.In 2023 this integrated partnership approach enabled E.ON to extend its position in the implementation of energy transition projects as well as in innovation.E.ON manages two key business initiatives,known

313、 as innovation engines,to deploy innovations generated by outside start-ups,by 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 Repor

314、t Risks and Chances Report Internal Control System Disclosures Regarding Takeovers 37 E.ON Integrated Annual Report 2023 universities,and in-house as quickly as possible in its operating business:E.ON Group Innovation GmbH(“EGI”)is our intragroup incubator and accelerator:EGIs business objective is

315、to implement innovation projects together with our core business units and develop them quickly into marketable products and services.EGI is also responsible for our partnerships with universities,such as the Energy Research Center,a joint venture between E.ON and RWTH Aachen University,and our part

316、nership with the Bits&Watts program at Stanford University in California.E.ON One GmbH(see page 34)is a growth and sales platform for market-ready digital solutions.E.ON One acquires startups,integrates their digital solutions into E.ONs system architecture to ensure their scalability and operationa

317、l reliability,and markets them to distribution network and sales companies in and outside E.ON.These innovation engines and close collaboration with the business units innovation activities enable E.ON to ensure that it implements its innovation strategy effectively and efficiently.Energy Research:F

318、oundation for Developing Climate-neutral Innovations E.ON conducts extensive research activities to gain important insights into key strategic technologies and developments of the future.We focus on four topics:technology forecasts and analyses,the establishment and design of distributed sustainable

319、 energy systems,and the development of programs for comprehensive decarbonization and sustainable heat supply.In 2023 E.ONs research and technology team again extended its international academic influence through a collaboration with Stanford University in California.We also successfully completed 1

320、6 projects as part of our long-standing partnership with RWTH Aachen University in Germany;19 more are currently in progress,including strategically important and business-oriented projects,such as Ectocontrol,whose purpose is to deliver optimal,holistic,and data-based control of Ectogrid,E.ONs fift

321、h-generation low-temperature grid.Global Innovation Ecosystem Affords Access to New Technologies and Solutions In 2023 E.ON successively expanded its collaboration with global partners,whose networks yield innovation projects and the development of new business models.E.ON is thus pursuing its goal

322、of drawing on a consistently well-filled innovation pipeline to continually deploy innovations in its operating business.In addition,E.ON tests the possibilities of new business activities,particularly together with its innovation teams in Silicon Valley(United States)and Tel Aviv(Israel),and monito

323、rs the development of disruptive innovations in which it sees the potential to generate new business opportunities or set market standards.Global Partner Network Helps Deploy Innovations across E.ON Group Since 2018,E.ON has worked with six other multinational energy utilities from Europe,North Amer

324、ica,Australia,and Asia in Free Electrons,a global accelerator program.The aim is to jointly identify promising startup solutions that enable and accelerate the energy transition.In 2023 we reached two new milestones:we entered into partnerships with U.S.-based Rondo to use heat storage help decarbon

325、ize industrial processes and with Naked Energy of the United Kingdom,whose solar thermal and hybrid technology we use to develop renewable heat solutions for large-scale industrial and urban decarbonization projects.E.ON held its successful Grid Startup Challenge innovation program for the fifth yea

326、r running in 2023.All 18 E.ON network companies participated.The 2023 event again yielded six new pilot projects that help make network infrastructure more efficient,sustainable,and resilient.For example,international startups Qube and Aeromon support E.ON subsidiary Westenergie by providing autonom

327、ous,compact laser sensors for detecting methane leaks in gas distribution networks.Another startup,Neuron Soundware,supplies E.ON with an AI-based technology that uses acoustic signals to swiftly detect and analyze faults in substations.Seagrass:A New Concept for Trading Carbon Certificates Seagrass

328、 Limited,a new E.ON subsidiary founded in 2023,is tapping the potential of the voluntary carbon market to accelerate the transition to net-zero emissions and propel decarbonization globally.One example is the Seagrass Carbon Map.It shows the locations and projects that back carbon certificates.Seagr

329、ass also increases transparency in the carbon certificate market by providing additional informationsuch as satellite images,land use,and biomass dataon the projects locations.A prototype of the Seagrass Carbon Map was presented at COP28,the UN Climate Change Conference in Dubai.Seagrass holds a fin

330、ancial services permission,which allows it to act as an intermediary on the carbon certificate market and bring together the markets supply and demand sides.Seagrass cooperates with an established exchange(ACX)to process carbon certificate purchases and sales.Central Innovation Projects and Scale Hu

331、bs:Two Successful,Mutually Beneficial Approaches to Innovation E.ONs central innovation projects are initiated in response to specific challenges and requests from its units.The central Innovation division alone managed 117 innovation projects in 2023.It also launched 76 new projects and handed 40 o

332、ver to our units to be integrated into the operating business.The innovation projects handed over in 2023 alone currently promise an estimated 230 million in sales growth over the next five years.An example of these innovations is an pilot project for dynamic pricing for public electric-vehicle char

333、ging that E.ON is currently conducting in Copenhagen.The Industry Innovations team is running another project called Zero.ON,which aims to help small and medium-sized enterprises record and quantify their carbon emissions.Combined Group Management Report Contents Search Back About this Report Corporate Profile Climate Protection and Environmental Management Employees and Society Governance Sustain