E.ON AG (ENAKF) 2024年CSR報告「OTC」.pdf

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1、 Integrated Annual Report 2024 Contents Search Back E.ON Integrated Annual Report 2024 2 We 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 with energy for all.Contents Search Back E.ON Inte

2、grated Annual Report 2024 3 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.Without distribution networks there can be no energy transition and no climate protect

3、ion.The expansion,modernization,and operation of distribution networks support security of supply and ensure the most efficient use of green power.Energy Infrastructure Solutions Decentral,flexible,and interconnected supply systems are crucial for the energy world of the future.Our Energy Infrastruc

4、ture Solutions business division focuses on sustainable energy solutions like district heating and colling as well as heat,steam,and power generation for cities and municipalities and for commercial and industrial customers.Energy Retail Our solutions help customers meet their personal energy needs

5、and decarbonization goals.This includes energy sales,which offers a wide range of green power and green gas tariffs,as well as sustainable solutions to enhance energy efficiency,energy autonomy,and eMobility.E.ONs activities in its Energy Retail business division are geared toward the individual nee

6、ds of residential customers,business customers,and sales partners.We ensure that new energy works E.ONwith its Energy Networks,Energy Infrastructure Solutions,and Energy Retail business divisionsis one of Europes largest energy companies.Our 1.6 million kilometers of energy distribution networks and

7、 roughly 47 million customers give us a leading role in shaping a green,digital,and decentralized energy world.*Its on us:to make new energy work.*These disclosures include Turkey and Slovakia.About E.ON Contents Search Back E.ON Integrated Annual Report 2024 4 Business Highlights 5 To Our Investors

8、 14 Combined Group Management Report 26 About This Report 27 Corporate Profile 28 Sustainability Statement 31 Business Report 78 Forecast Report 98 Risks and Chances Report 99 Disclosures Pursuant to Section 289,Paragraph 4,and Section 315,Paragraph 4 of the German Commercial Code on the Internal Co

9、ntrol System for the Accounting Process 104 Disclosures Regarding Takeovers:Disclosures Pursuant to Section 289a and Section 315a of the German Commercial Code and Explanatory Report 106 Appendix to the Sustainability Statement 108 Consolidated Financial Statements 132 Consolidated Statement of Inco

10、me 133 Consolidated Statement of Recognized Income and Expenses 134 Consolidated Balance Sheets 135 Consolidated Statement of Cash Flows 137 Consolidated Statement of Changes in Equity 139 Notes 141 Other Information 209 Declaration of the Board of Management 210 Independent auditors report 211 Assu

11、rance Report in Relation to the Group Sustainability Report 216 Boards 219 Summary of Financial Highlights 222 Task Force on Climate-related Financial Disclosures(“TCFD”)224 ESG Figures 225 Sustainable Development Goals(“SDGs”)Index 230 Financial Calendar and Imprint 231 Contents Search Back E.ON In

12、tegrated Annual Report 2024 5 Growth strategy reaffirmed:investments totaling 7.5 billion in 2024 propel the energy transition 2024 adjusted EBITDA and adjusted net income performance in line with expectations Outlook for the 2025 financial year:adjusted EBITDA of 9.6 to 9.8 billion and adjusted net

13、 income of 2.85 and 3.05 billion anticipated Dividend of 0.55 per share proposed for the 2024 financial year,a year-on-year increase of 4 percent German regulatory agency confirms E.ONs pacesetting role in energy-network efficiency Debt factor of 4.5 at year-end 2024 comfortably below 5.0 Business H

14、ighlights Contents Search Back E.ON Integrated Annual Report 2024 6 How We Create Value The following overview uses examples and relevant data to show how we create value for our stakeholders.The three key elements of E.ONs strategysustainability,digitalization,and growthare the centerpiece of our b

15、usiness model and deeply embedded in the way we think,work,and impact peoples lives.This overview is guided by the International Integrated Reporting Councils(“IIRC”)framework.Contents Search Back E.ON Integrated Annual Report 2024 7 How We Make an Impact Contents Search Back E.ON Integrated Annual

16、Report 2024 8 Key Performance Indicators Financial Contents Search Back E.ON Integrated Annual Report 2024 9 Key Figures of the E.ON Group Financial 1Adjusted for non-operating effects.2Adjustment of the previous years figures due to the expansion of investments to include cash inflows and outflows

17、for loans to affiliated non-consolidated companies as well as other loans.3The figure at December 31,2024,corresponded to the figure shown in the Consolidated Balance Sheets.The figure for asset-retirement obligations at December 31,2023,does not fully correspond to the figure shown in the Consolida

18、ted Balance Sheets.This is because economic net debt is calculated in part based on the actual amount of E.ONs obligations.4Change in percentage points.5Attributable to shareholders of E.ON SE.6Based on shares outstanding(weighted average).7For the respective financial year;the 2024 figure represent

19、s managements dividend proposal.Financial Figures in millions 2024 2023 +/-%Sales 80,119 93,686 -14 Adjusted EBITDA1 9,049 9,370 -3 Regulated business(%)74 70 6 Quasi-regulated and long-term contracted business(%)4 3 33 Merchant business(%)22 27 -19 Adjusted EBIT1 5,762 6,387 -10 Net income/loss 5,5

20、62 760 632 Net income/loss attributable to shareholders of E.ON SE 4,531 517 776 Adjusted net income1 2,856 3,068 -7 Investments 7,499 6,463 16 Cash provided by operating activities 5,673 5,654 0 Cash provided by operating activities before interest and taxes 7,343 7,225 2 Economic net debt(at year-

21、end)3 41,067 37,691 9 Debt factor3 4.5 4.0 14 Credit rating S&P BBB+BBB +Credit rating Moodys Baa2 Baa2 unchanged Credit rating Fitch BBB+BBB+unchanged Average capital employed 65,248 59,895 9 Equity 24,166 19,970 21 Total assets 111,361 113,506 -2 Cash Conversion Rate(%)90 80 13 4 ROCE(%)8.8 10.7 -

22、17 4 Earnings per share5,6()1.73 0.20 765 Adjusted net income per share5,6()1.09 1.18 -8 Dividend per share7()0.55 0.53 4 Dividend payout 1,437 1,384 4 Contents Search Back E.ON Integrated Annual Report 2024 10 Key Performance Indicators Sustainability Contents Search Back E.ON Integrated Annual Rep

23、ort 2024 11 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 proport

24、ion of renewables capacity calculated as a percentage of the total sum of all installed generating capacity.4Core workforce in FTE 5Serious incidents and fatalities(SIF)among employees:safety incidents per million hours of work.6Lost time injury frequency(LTIF)measures work-related accidents resulti

25、ng 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 2024 2023 Environment CO2 emissions(millions of metric tons CO2e)Scope 1

26、1.98 2.01 Scope 2(location-based)3.66 3.46 Scope 3(market-based)60.06 65.23 EU taxonomy-aligned capex(%)1 98 98 EU taxonomy-aligned opex(%)1 97 98 EU taxonomy-aligned sales(%)1 99 97 Avoided CO2 emissions together with our customers(millions of metric tons)2 119 106 Share of renewable generation pla

27、nts connected to E.ONs power grid(%)3 86 86 Ecological network corridor management(%)19 12 Number of smart energy meter installations(thousands)15,854 13,803 Number of smart heat meter installations(thousands)128 94 Number of charging points sold by E.ON 22,765 23,923 Green power as a proportion of

28、total power sales(%)49 54 Social Employees of the E.ON Group(at year-end)4 76,566 72,242 Proportion of women(%)32 32 Average age of employees 41 42 Serious incidents and fatalities(SIF)among employees5 0.03 0.03 Lost-time injury frequency(LTIF)among employees6 2.46 2.17 Proportion of female executiv

29、es(%)26 24 People development(hours per employee)7 20.6 22.0 System average interruption duration index(SAIDI)(minutes)8 Germany 23 21 Sweden 138 156 Hungary 149 151 Community contribution(in millions)17 22 Volunteer activities of E.ON employees(number of volunteer hours)25,514 22,129 Governance Pro

30、portion of women on the Supervisory Board(%)9 38 38 Proportion of independent Supervisory Board members(%)100 100 ESG targets included in Management Board compensation Contents Search Back E.ON Integrated Annual Report 2024 12 Key Performance Indicators Energy Networks Contents Search Back E.ON Inte

31、grated Annual Report 2024 13 Key Performance Indicators Energy Retail/EIS1 1 Energy Infrastructure Solutions Contents Search Back E.ON Integrated Annual Report 2024 14 Reasons to Invest in E.ON StockEnergy Networks Long-term growth in a regulated environment Growth opportunities from the green energ

32、y transition well into the 2030s and a regulated business model provide for a steady and profitable earnings growth path Energy Infrastructure Solutions Growth acceleration from contracted infrastructure Best-in-class energy infrastructure portfolio capitalizing on the decarbonization needs of citie

33、s and industries Energy Retail Reliable returns and attractive cash generation Healthy cashflows from a capital-light business,further expanded by cross-selling integrated flexible solutions addressing rising demand from electrification Strategic Foundation Digitalization and sustainability as strat

34、egic 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 Clear focus on value creation and solid financial headroom ensuring

35、 an attractive shareholder return outlook including dividend and earnings growth To Our Investors To Our Investors E.ON on the Capital Market Contents Search Back E.ON Integrated Annual Report 2024 15 To Our Investors E.ON on the Capital Market 2024:DAX Delivers Good Performance Despite Weak Economy

36、 Germanys DAX stock index ended 2024 up 19 percent.Many DAX companies benefited from their broad international scope.Germanys weak economy therefore only affected them to a limited extent.Central banks,which lowered their key interest rates,had a significant influence on the performance of European

37、and German equities during 2024.Compared with the DAX,E.ON stocks performance was mixed,because E.ON generates a large portion of its business in Germany.E.ON stock reached a multi-year high of 13.82 in mid-Septembera 14 percent increase.This trend subsequently reversed,however,and the stock closed

38、2024 at a price of 11.25,which is 7 percent below the prior-year closing price of 12.15.E.ON stock thus underperformed the DAX and also its European peer index,the Euro Stoxx 600 Utilities(-3 percent).The reasons for this performance in the fourth quarter included the switch from defensive stocks to

39、 cyclical stocks as well as uncertainty regarding the regulatory environment and the upcoming federal election in Germany.Continuous Dividend Growth At the Annual Shareholders Meeting on May 15,2025,the Management Board and Supervisory Board will propose paying out a cash dividend of 0.55 per share

40、for the 2024 financial year(prior year:0.53).Based on E.ON stocks year-end 2024 closing price,the dividend yield is 5 percent.The payout ratio(as a percentage of adjusted net income)is 50 percent.Our dividend policy aims to offer our shareholders attractive dividend growth of up to 5 percent annuall

41、y.E.ON Stock Key Figures Per share()2024 2023 Dividend1 0.55 0.53 Dividend payout1(in millions)1,437 1,384 Twelve-month high2 13.82 12.63 Twelve-month low2 11.01 9.47 Year-end closing price2 11.25 12.15 Market capitalization3(in billions)29.56 33.77 1For the respective financial year;the 2024 figure

42、 represents managements dividend proposal.2Source:NASDAQ.3Based on ordinary shares outstanding at year-end.To Our Investors E.ON on the Capital Market Contents Search Back E.ON Integrated Annual Report 2024 16 Broad Investor Base The most recent shareholder identification at year-end 2024 shows that

43、 E.ON stock has roughly 58 percent institutional investors,roughly 22 percent retail investors,and about 20 percent other investors.Investors in Germany hold about 42 percent of E.ON stock,those outside Germany about 58 percent.E.ON Stock Is Represented on Numerous Stock Exchanges and Part of Multip

44、le Indices E.ON stock trades in Frankfurt am Main and on other German stock exchanges as well as via electronic trading platforms such as Xetra.It is also available on stock exchanges in other European countries.E.ON stock is included in the DAX and other indices in Europe,such as the Euro Stoxx 600

45、 Utilities,MSCI World,and the S&P Europe 350.E.ON stock trades over the counter on OTC Pink in the United States in the form of American depositary receipts(“ADRs”).E.ONs ADR program offers U.S.investors the opportunity to acquire E.ON stock and hold it in the form of share certificates that are tra

46、ded 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 Identification Numbers Reuters:Xetra EONGn.DE Reuters:Frankfurt Stock

47、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 E.ON on the Capital Market Contents Search Back Ongoing Investor

48、Communication Our investor relations continue to be founded on four principles:openness,continuity,credibility,and equal treatment of all our investors.Our mission is to provide prompt,precise,and relevant information at our periodic conferences and road showsworldwidebecause maintaining regular com

49、munications and relationships is essential for good investor relations.A hybrid approach of virtual and in-person activities has proven to be effective.This helps us to communicate with capital markets efficiently and meet our investors needs.Foresightful Funding,Stable Credit Rating Debt capital re

50、presents a very important funding source for the E.ON Group.That is why we focus on satisfying the demands of creditors as well as those of shareholders.The credit ratings of Moodys and Fitch remained stable during the year under review,whereas Standard&Poors upgraded its rating from BBB to BBB+.The

51、se credit ratings reflect the confidence in E.ONs creditworthiness and thus support its competitiveness for future financing activities.E.ON issued euro-denominated bonds totaling roughly 4.95 billion in the 2024 financial year and,at year-end 2024,had a solid funding situation that serves in part a

52、s pre-funding for the 2025 financial year.In addition,E.ON continually aims to maximize the diversity of its investor base to ensure that it has cost-optimized access to a variety of funding sources at all times.In 2024,for example,E.ON issued private placements in euros and other currencies(NOK,JPY

53、),all of which help achieving the goal of a more diversified funding base.E.ON has a 10 billion Commercial Paper(“CP“)program and a US$10 billion CP program,under which it can issue short-term notes.Financial Framework for Sustainable Funding Sustainability aspects play an increasingly important rol

54、e 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 Framework,under which it issues debt instruments whose issuance proceeds fund sustainable investment projects,not only with the ICMA Green Bond Princi

55、ples but also with the EU Taxonomy.The EU Taxonomy Regulation defines which economic activities are classified as environmentally sustainable,thereby setting a Europe-wide standard for sustainable investment.E.ON generally intends to cover more than 50 percent of its annual funding requirements with

56、 green bonds.Green bonds accounted for about 72 percent of total bond financing,or roughly 3.55 billion in 2024.The Financial Situation chapter provides detailed information about E.ONs financing.Contents Search Back E.ON Integrated Annual Report 2024 18 The E.ON Management Board The Management Boar

57、d manages the Companys business,with all its members bearing joint responsibility.It determines E.ONs corporate objectives,fundamental strategic course,corporate policy,and organizational setup.From left to right:Victoria Ossadnik Chief Operating Officer Digital Thomas Knig Chief Operating Officer N

58、etworks Leonhard Birnbaum Chief Executive Officer Nadia Jakobi Chief Financial Officer Marc Spieker Chief Operating Officer Commercial To Our Investors CEO Letter Contents Search Back CEO LetterDear Shareholders and Friends of E.ON,A playmaker assumes leadership and responsibility in difficult times

59、.And E.ON was a playmaker in 2024.We continued on our growth path,and our strength and operating performance enabled us to record very good Group adjusted EBITDA of 9 billionwhich is at the upper end of our forecast rangeamid a difficult policy and regulatory environment.Since 2021 weve continually

60、expanded our investmentsstarting from 22 billionand now plan to invest 43 billion for the period through 2028.Our brand positioning last year reemphasized what this is all about.Its about“making new energy work.“Its about building energy infrastructure that supplies sustainable energy around the clo

61、ck as efficiently as possible.Thats precisely what our distribution networks and energy infrastructure solutions do.This is underscored by our record investments in the energy transition in the 2024 financial year.We invested more than we ever have since our realignment.We thus delivered on our plan

62、s and massively propelled the green transformation of Europes energy system.Our Energy Networks business division invested a total of 5.8 billion,in part to meet the considerable demand for new network connections,smart meters,and digitalization.Energy Infrastructure Solutions 1 billion in investmen

63、ts illustrate this businesss growth potential.Our Energy Retail business division focused on serving our large customer base,which was again stable in 2024.We are a pacesetter in digitalization,which is the basis for individual and attractive customer offerings so that energy will remain affordable

64、for our customers in the future as well.Were taking on the debate about the energy transition that erupted in many of our markets last year.Theres no alternative to the energy transition.Reversing course halfway through would make neither environmental nor economic sense.Instead,the focus has shifte

65、d to another question:“How can we shape the transformation so that energy is sustainable,but also secure and affordable?”The continued expansion of renewable energy generation is a certainty.The challenge now is to create a smooth and financeable overall system.Amid increasingly volatile feed-in and

66、 the resulting network congestion,system costs are increasingly becoming the decisive factor in energy prices.Slack winds and heavy cloud cover at the end of the year accompanied by skyrocketing electricity prices on energy exchanges were just one particularly visible proof that our energy system is

67、 far from robust.This is why we will need massive investment in networks and flexibility solutions in the years ahead.And E.ON will lead the way as a playmaker.Our business therefore remains resilient and promising,and our growth strategy is intact.In other words,E.ON is largely immune to political

68、turmoil.Nevertheless,business as usual isnt an option.The new German government must give the energy transition a fresh start and unleash new economic growth.First,this means that strong and decisive political leadership is needed that again focuses its attention on the economy and competitiveness.A

69、 few days before our annual reports publication,Germany will hopefully have elected such a government following the failure of the traffic-light coalition.And the new European Commission will hopefully also gear the energy transition much more toward Leonhard Birnbaum Management Board Chairman and C

70、EO To Our Investors CEO Letter Contents Search Back E.ON Integrated Annual Report 2024 20 competitiveness.However,it will only achieve this if it refrains from bureaucracy and dirigisme and can count on strong partners among the member states.Second,the regulatory environment must be right so that i

71、t makes financial sense for companies to invest.In the network business in Germany,this is no longer sufficiently the case in the current regulatory period for power,contrary to policymakers desire for investments to be ramped up.Germanys Federal Network Agency now has the opportunity to address thi

72、s and make improvements for the fifth regulatory period for power,which begins in 2029.We will await the outcome and then move forward with our future investment plans in the interests of our shareholders.Best wishes,Leo BirnbaumTo Our Investors Report of the Supervisory Board Contents Search Back R

73、eport of the Supervisory Board Dear Shareholders,Amid geopolitical challenges and the continuing advance of climate change,the transformation of Europes energy system remains one of the key issues of our time.E.ON is moving forward to expand and digitalize its networks to promote a secure and sustai

74、nable energy supply while ensuring affordability for consumers.E.ON also has great ambitions for its integrated,sustainable energy solutions for cities and industrial enterprises,its networked and digital customer solutions,and its energy sales business.E.ON thus again aims to be the playmaker of th

75、e energy transition,and its playmaker advertising campaign in 2024 effectively projected this new brand identity.The Supervisory Board would like to thank the Management Board and all employees for the special efforts they made in the 2024 financial year.The energy transition is a challenge for soci

76、ety as a whole and is significantly influenced by policymaking.The new European Commission started work in December 2024.Germany held new elections.We now expect both to make trendsetting decisions.At E.ON,we are working to fulfill our role and responsibility for shaping a sustainable energy future

77、in Europe.The challenges are significantbut so are the opportunities.In the 2024 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

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

79、lar basis,the shareholder representatives and employee representatives made separate preparations for these meetings with the participation of one or several members of the Management Board.All members attended all Supervisory Board meetings.The Management Board regularly provided the Supervisory Bo

80、ard 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 reports,motions,and proposed

81、 resolutions.After thoroughly examining and discussing the resolutions proposed by the Management Board,the Supervisory Board approved on them when it was required by law,the Companys Articles of Association,or the Supervisory Boards rules and procedures.Furthermore,the Supervisory Board also met on

82、 a recurring basis without the Management Board being present.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.This was made use of in some insta

83、nces.Erich Clementi Chairman of the Supervisory Board To Our Investors Report of the Supervisory Board Contents Search Back E.ON Integrated Annual Report 2024 22 Overview of the Attendance of Supervisory Board Members at Meetings of the Supervisory Board and Its Committees in the 2024 financial year

84、 Supervisory Board members Supervisory Board Executive Committee Audit and Risk Committee Innovation and Sustainability Committee Nomination Committee Clementi,Erich 4/4 5/5 -1/11 2/2 Frhlich,Klaus 4/4 -4/4 -Grillo,Ulrich 4/4 5/5 -2/2 Groth,Anke 4/4 -4/4 -Petit,Nadge 4/4 -4/4 -Schmitz,Andreas 4/4 -4

85、/4 1/11 2/2 Schmitz,Rolf Martin 4/4 5/5 -Wilkens,Deborah 4/4 -4/4 3/31 -Bauer,Katja 4/4 -3/4 -Luha,Eugen-Gheorghe 4/4 -May,Stefan 4/4 -4/4 -Pinczsn Mrton,Szilvia 4/4 -Phls,Ren 4/4 5/5 4/4 -Wallbaum,Elisabeth 4/4 -4/4 -Werneke,Frank 4/4 5/5 -Winterweber,Axel 4/4 5/5 -4/4 -1Attended as a guest.Fine-tu

86、ning E.ONs Growth Strategy and Digitalization Initiatives After years of fundamental restructuring and successfully dealing with the energy crisis,E.ON is facing a decisive phase of growth in the energy sector.The focus is clearly on network infrastructure and the associated investments as well as o

87、n the expansion of our Energy Retail business divisions sustainable,digital customer solutions and energy sales.E.ON aims to play an even more active role in shaping Europes energy transition and to propel the decarbonization of cities and communities as well as business customers operations.E.ON ma

88、de Energy Infrastructure Solutions(“EIS”)a separate business division as of January 1,2024.In the 2024 financial year,the Supervisory Board discussed E.ONs strategic direction with the Management Board,in particular in view of the altered geopolitical and regulatory situations.The Management Board a

89、nd the members of the Supervisory Board were in agreement regarding the measures presented by the Management Board.In addition,the Management Board informed the Supervisory Board and/or its committees on an ongoing basis about growth projects and the development of innovative business models.Importa

90、nt Topics of the Supervisory Boards Discussions The dynamic policy and energy-market developments in Germany and Europe formed an important topic of the Supervisory Boards deliberations.The board examined the German governments power plant strategy and the consequences of the Federal Constitutional

91、Courts ruling on the climate and transformation fund were discussed.It also discussed electricity market design and key geopolitical developments such as the conflict in the Middle East.In addition,the Supervisory Board addressed the devastating floods in Eastern and Central Europe in September 2024

92、 and their implications for the E.ON Group.Furthermore,the Supervisory Board dealt with E.ONs positioning on the capital markets and its asset,financial,and earnings situation,dividend policy,workforce developments,and earnings opportunities and risks.The Supervisory Board and the Management Board t

93、horoughly discussed the E.ON Groups medium-term plan for 2025 to 2029 and approved the budget for 2025.In addition,the Supervisory Board was provided with periodic reports on the Companys cybersecurity and business continuity management.A special focus of every meeting was health and safety as well

94、as accident prevention(in particular,key accident indicators)in the Group as well as the design of a new road map to further reduce accidents and to better embed the importance of occupational safety in our culture.The Supervisory board also discussed the current positive developments in customer nu

95、mbers and customer satisfaction as well as the development of employee numbers.Patrick Lammers left the E.ON SE Management Board by mutual agreement at the close of May 31,2024.In recent years,Mr.Lammers not only successfully positioned E.ONs customer solutions businessespecially the end-customer bu

96、siness in Europein a time of crisis,but has also noticeably increased customer satisfaction.The Supervisory Board would like to thank him for these achievements.The Supervisory Board decided on two personnel changes to the Management Board in the 2024 financial year.Marc Spieker,previously Chief Fin

97、ancial Officer of E.ON SE,took over the role of Chief Operating OfficerCommercial from Patrick Lammers on June 1,2024.He is responsible in particular for energy sales and customer solutions at the Energy Retail and Energy Infrastructure Solutions business divisions.His new area of responsibility als

98、o includes Commercial Programming,Hydrogen,Energy Management,and Marketing.Nadia Jakobi was appointed to the Management Board as Chief Financial Officer effective June 1,2024.Ms.Jakobi,previously CEO of the E.ON Groups central commodity procurement unit,E.ON Energy Markets GmbH,is responsible for Fi

99、nance,Investor Relations,Mergers&Acquisitions,Accounting,Controlling,Risk Management,Tax,Finance,and S4 Transformation.Ms.Jakobi started her career at E.ON in 2001 and returned to E.ON in 2019 after a three-year stint at Uniper.To Our Investors Report of the Supervisory Board Contents Search Back E.

100、ON Integrated Annual Report 2024 23 Corporate Governance In the declaration of compliance issued at the end of the year,the Supervisory Board and the Management Board declared that E.ON was in full compliance with the recommendations of the Government Commission on the German Corporate Governance Co

101、de 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 2023.The Management Board and Supervisory Board also declared that E.ON has been in full compliance with the recomm

102、endations of the Government Commission on the 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.The current version of the declaration of compliance as well as earlier versio

103、ns are published on the Internet at .In early 2024 the Supervisory Board Chairman held discussions with investors on topics specific to the Supervisory Board at a corporate governance road show.In accordance with E.ON SEs Articles of Association,the Management Board is authorized to provide that Ann

104、ual 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 the format of the Annual Shareholders Meeting is made annually.Deliberations focus in particular on safe

105、guarding shareholder rights.Aspects such as the agenda,energy and resource consumption,the possibility of additional shareholder groups to participate,and process security are taken into account as well.On this basis,the 2025 Annual Shareholders Meeting will again take place in a virtual format.The

106、Supervisory Board is aware of no indications of conflicts of interest in the past financial year involving members of the Management Board or Supervisory Board.Education and training sessions on selected issues of E.ONs business were conducted for Supervisory Board members in the past financial year

107、.This included a training course on the eMobility business and a tour of the E.ON Drive testing lab to provide information on the testing of charging solutions and energy management systems.At a Supervisory Board meeting held in Sweden,the board discussed in detail the transformation of the Swedish

108、energy system and visited a local network station,where it had an up-close look at the functioning of the network business.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 Co

109、de and Section 289f,Paragraph 2,Item 6 of the German Commercial Code and the status of the implementation of the competency profile in the form of a qualifications matrix are available in the Corporate Governance Declaration.The effectiveness of the Supervisory Boards work and that of its committees

110、 was examined between August and October 2024 by means of an external self-assessment using a detailed questionnaire and in-depth individual interviews.The Supervisory Board discussed the findings at one of its meetings.Collaboration within the Supervisory Board and with the Management Board was una

111、nimously assessed to be trusting and constructive.The Supervisory Board will take up suggestions for further exploring certain topics in the 2025 financial year.Committee Work To fulfill its duties carefully and efficiently,the Supervisory Board has created committees.All committeeswith the exceptio

112、n of the Nomination Committeehave an equal number of shareholder and employee representatives.The Executive Committee held four ordinary meetings and one extraordinary meeting in the 2024 financial year.All members took part in all of the committees meetings.At its meetings,the committee,in particul

113、ar,addressed the dynamic policy and regulatory changes in conjunction with the current transformation of Europes energy system.Additionally,the Executive Committee dealt with the Management Boards compensation,including the achievement of Management Board targets for 2024 and the setting of the targ

114、ets for 2025.In addition,the Executive Committee did preparatory work for the resolutions relating to personnel matters on the Management Board and business projects requiring approval and,where it was responsible for doing so,passed resolutions on them.The Audit and Risk Committee met four times in

115、 the 2024 financial year.One member was unable to attend one meeting,Otherwise,all members attended all meetings.The committee conducted a thorough review,in particular of the 2023 Financial Statements of E.ON SE(prepared in accordance with the German Commercial Code),the E.ON Groups 2023 Consolidat

116、ed Financial Statements(prepared in accordance with International Financial Reporting Standards,or“IFRS”),and the 2024 intermediate financial reports of E.ON SE.The committee discussed the recommendation for selecting an independent auditor for the 2024 financial year as well as the interim financia

117、l reports and assigned the tasks for the independent auditors auditing services,established the audit priorities,determined the independent auditors compensation and reviewed the independent auditors qualifications as well as the quality of the independent audit,and verified the auditors qualificati

118、ons and independence in accordance with the requirements of the law and the German Corporate Governance Code.Furthermore,the committee assigned to the independent auditor the task of conducting the voluntary audit of E.ON SE and the E.ON Groups combined Non-financial Statement as well as the audit o

119、f mandatory non-financial disclosures in accordance with the EU Taxonomy Regulation and of additional sustainability information integrated into the Combined Group Management Report.The committee also assigned the task of the sustainability auditors audit services in the event of Germanys anticipate

120、d transposition into law of European sustainability reporting requirements.The committee also assured itself that 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 Board

121、s rules and procedures,in particular Internal Audits activities and reports,accounting issues,risk management,transactions with related parties,and developments in the area of To Our Investors Report of the Supervisory Board Contents Search Back E.ON Integrated Annual Report 2024 24 compliance.Furth

122、ermore,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 Supervisory Board.On the basis of the quarterly risk reports,the committee noted that

123、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,and the Companys cyber,legal,and data-protection risks as well as business conti

124、nuity management.In preparation for Germanys transposition into law of the obligation to audit sustainability reporting,the committee dealt thoroughly with this reporting.In addition,there was a regular exchange of information between the Chairman of the Audit and Risk Committee and the independent

125、auditor throughout the financial year.The Innovation and Sustainability Committee met four times.All members attended all of the committees meetings.The matters addressed by the committee included E.ONs progress toward achieving its sustainability targets and its position in leading sustainability r

126、ankings.The further development of the new Energy Infrastructure Solutions business division and digitalization in the Energy Networks business division were also the subject of extensive discussions.The Innovation and Sustainability Committees considerations encompassed the E.ON eMobility Solutions

127、 and E.ON Drive Infrastructure units as well.The Nomination Committee met twice in the 2024 financial year.At these meetings it dealt with succession planning for the Supervisory Board and,with outside support,the findings of the self-assessment of the Supervisory Boards work(efficiency audit).All m

128、embers attended the committees meetings.Committee chairpersons reported the agenda and results of their respective committees meetings to the full Supervisory Board on a regular basis.The Corporate Governance Declaration provides information about the committees composition and responsibilities.Exam

129、ination and Approval of the Financial Statements,Approval of the Consolidated Financial Statements,Proposal for Profit Appropriation for the Year Ended December 31,2024 KPMG AG,Wirtschaftsprfungsgesellschaft,audited and submitted an unqualified auditors and/or audit opinion on the Consolidated Finan

130、cial 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 31,2024.KPMG AG Wirtschaftsprfungsgesellschaft was elected as Group auditor by t

131、he Annual Shareholders Meeting on May 16,2024,and has been E.ON SEs independent auditor without interruption since the 2021 financial year.The auditor responsible at KPMG AG Wirtschaftsprfungsgesellschaft is Alexander Bock,who is performing this function for the first time.The IFRS Consolidated Fina

132、ncial 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 February 25,2025,thoroughly discussedin the presence of the independent auditor and with knowledge of,an

133、d 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 well as the Managemen

134、t 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 Independent Auditors

135、Report.To Our Investors Report of the Supervisory Board Contents Search Back E.ON Integrated Annual Report 2024 25 The Supervisory Board also examined the sustainability reporting consisting of the combined Non-Financial Statement and additional sustainability information which are integrated into t

136、he 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;selected disclosures were audited with reasonable assurance.

137、Following the final result of its examination,the Supervisory Board raised no objections to the integrated sustainability reporting,including the Non-Financial Statement.On February 25,2025,the Supervisory Board approved the Financial Statements of E.ON SE prepared by the Management Board and the Co

138、nsolidated 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 Board examined the Management Boards proposal for profit a

139、ppropriation,which includes a cash dividend of 0.55 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 Management Boards proposal for profit appropriation.Perso

140、nnel Changes on the Supervisory Board Frank Werneke has been Deputy Chairman of the Supervisory Board since January 16,2024,succeeding Christoph Schmitz.Pages 219 and 220 of the Integrated Annual Report provide an overview of all members of the Supervisory Board.Essen,February 25,2025 The Supervisor

141、y Board Best wishes,Erich Clementi Chairman Contents Search Back E.ON Integrated Annual Report 2024 26 About This Report 27 Corporate Profile 28 Business Model 28 Strategy 28 Innovation 29 Management Control System 29 Sustainability Statement 31 General Information 31 Climate Protection and Environm

142、ental Management 39 Employees and Society 55 Governance 72 Sustainable Finance and Sustainable Investment 76 Business Report 78 Macroeconomic and Industry Environment 78 Special Events in the Reporting Period 81 Subsequent Events 82 Business Performance 83 Energy Networks 83 Energy Infrastructure So

143、lutions 84 Energy Retail 84 Earnings Situation 86 Financial Situation 92 Asset Situation 95 E.ON SEs Earnings,Financial,and Asset Situation 96 Forecast Report 98 Risks and Chances Report 99 Disclosures Pursuant to Section 289,Paragraph 4,and Section 315,Paragraph 4 of the German Commercial Code on t

144、he Internal Control System for the Accounting Process 104 Disclosures Regarding Takeovers:Disclosures Pursuant to Section 289a and Section 315a of the German Commercial Code and Explanatory Report 106 Appendix to the Sustainability Statement 108 Combined Group Management Report Combined Group Manage

145、ment Report About this Report Contents Search Back E.ON Integrated Annual Report 2024 27 About This Report Standards This Integrated Annual Report applies to the E.ON Group as well as E.ON SE.E.ON is therefore fulfilling all requirements of International Financial Reporting Standards(“IFRS”),the Ger

146、man Commercial Code(German abbreviation:“HGB”),and German Accounting Standards(German abbreviation.“DRS”).The Sustainability Statement is likewise fully integrated into the Combined Group Management Report.Scope This report encompasses all subsidiaries that are fully consolidated in E.ONs 2024 Conso

147、lidated Financial Statements.Thresholds based on key performance indicators(“KPIs”)are used to distinguish companies that do not contribute significantly to the Integrated Annual Report.The Business Model chapter contains more information about the E.ON Groups structure and business divisions.The re

148、porting period is the 2024 calendar year.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.In addition,the Integrated Annual Report includes the Disclosures Regardin

149、g Takeovers.The Corporate Governance Declaration is published on our website in the Corporate Governance chapter.The Integrated Annual Report was published on February 26,2025,and is available in German and English in pdf format.You can download the pdf version of this report at .The previous Integr

150、ated Annual Report was published in March 2024.You can find it and additional reports in the Investor Relations Archive at .Language We generally use the shorter name for companies and organizations(such as“E.ON”rather than“E.ON SE”).2 This section is part of the Sustainability Statement.It contains

151、 information on the ESRS disclosure requirements ESRS 2 BP-1 para.5a-c and BP-2 para.10-15.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 Financial Stat

152、ements and is therefore excluded from the auditors report is identified separately,as described below.For the Sustainability Statement,a separate assurance engagement(“Sustainability Assurance”)was performed by KPMG AG in accordance with the International Standard on Assurance Engagements(“ISAE”)300

153、0(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 H4 apply until the next heading of the same level of hierarchy.Sections within t

154、he 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 H5 which apply until the next heading of the same level of hierarchy.In addition,individual sections or KPIs that are subject to a differe

155、nt audit assurance may be marked separately.The corresponding contents are marked as follows:+Not part of the statutory audit of the Consolidated Financial Statements and audited with reasonable assurance as part of the audit of the Sustainability Statement.Not part of the statutory audit of the Con

156、solidated Financial Statements and audited with limited assurance as part of the audit of the Sustainability Statement;individual text passages are indicated by.x Not part of the Combined Group Management Report and the Sustainability Statement,unaudited;individual text passages are indicated by .Th

157、e precise scope of the audit is described in the Other Information section in the Independent Auditors Report and in the report on the management review of the Sustainability Statement.Sustainability Statement2 The Sustainability Statement was prepared to meet the requirements of Directive(EU)2022/2

158、464 of the European Parliament and of the Council of December 14,2022(Corporate Social Responsibility Directive,“CSRD”)and to meet the requirements of Sections 315b and 315c of the German Commercial Code(German abbreviation:“HGB”)for a non-financial group statement and Sections 289b to 289e of the H

159、GB for a non-financial company statement.For the first time,we are applying the first set of the European Sustainability Reporting Standards(“ESRS”)as a framework for preparing the Sustainability Statement.E.ON SEs Non-Financial Statement was prepared without using a framework.In addition,we are com

160、plying with the EU Taxonomy Regulations disclosure requirements.The Index to the Sustainability Statement shows which ESRS disclosures are relevant for E.ON and where these disclosures are located.The Sustainability Statement likewise refers to the 2024 calendar year.The Sustainability Statement not

161、 only considers all fully consolidated E.ON subsidiaries,but also key players in our upstream and downstream value chain.Where relevant,corresponding information can be found in the respective environmental,social,and governance(“ESG”)chapters.Prior-year figures of most KPIs are provided to improve

162、comparability.We compiled a small number of ESRS KPIs for the first time in 2024 and therefore do not report the prior-year figures.In the case of any prior-year figures for ESRS KPIs in this report,their definition already complied with ESRS requirements in 2023.Adjustments to prior-year figures of

163、 a KPI are explained in footnotes.We explain in the respective chapters any sustainability KPIs that contain data from secondary sources or prior-year data.This applies in particular to our reporting on greenhouse gas emissions.We also use emission factors from external sources.The Climate Protectio

164、n chapter provides detailed information on the emission factors used.The Sustainability Statement also uses forward-looking information;actual results may differ from the statements.Combined Group Management Report Corporate Profile Contents Search Back E.ON Integrated Annual Report 2024 28 Corporat

165、e Profile Business Model3 E.ON is an investor-owned energy company with approximately 76,600 employees(full-time equivalents)led by Corporate Functions in Essen.Effective January 1,2024,the Groups core business is divided into three business divisions:Energy Networks,Energy Infrastructure Solutions,

166、and Energy Retail.Corporate functions,equity interests managed directly by E.ON SE,and non-strategic operations are reported under Corporate Functions/Other.Energy Networks This business division consists of E.ONs power and gas distribution networks and related activities.E.ON operates energy networ

167、ks in the following regional markets:Germany,Sweden,Central Eastern Europe(which consists of the Czech Republic,Poland,and a shareholding in Slovakia accounted for using the equity method),and South Eastern Europe(which consists of Hungary,Croatia,Romania,and the stake in Enerjisa Enerji in Turkey,w

168、hich is accounted for using the equity method).This business divisions 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.The latter frequently involves adding customer connections an

169、d connecting renewable energy generation assets.Energy Infrastructure Solutions This business division develops energy solutions that provide cities and municipalities as well as industrial and commercial customers in many regions of Europe(primarily in Germany,Scandinavia,and the United Kingdom)wit

170、h sustainable solutions for the supply of heat,electricity,steam,and cooling.Its portfolio encompasses district heating and cooling,embedded solutions for city districts and industrial and commercial customers,and products and services that enhance energy efficiency in order to design economical and

171、 sustainable energy solutions for industrial facilities.Furthermore,battery storage systems that provide flexibility options for electricity networks extend the range of services offered.Some of these solutions are supplemented by software-based applications for optimizing energy consumption.The sma

172、rt energy meter business in the United Kingdom is also reported in this business division.Energy Retail This business division supplies customers in Europe with power and gas(conventional and green)and provides them with sustainable solutions that enhance their energy efficiency,energy autonomy,and

173、eMobility.E.ONs 3 This section is also part of the Sustainability Statement.It contains information on the ESRS disclosure requirements ESRS 2 SBM-1 para.40a i.and ii.,and para.42.4 This section is also part of the Sustainability Statement.It contains information on the ESRS disclosure requirements

174、ESRS 2 SBM-1 para.40e-g and SBM-3 Tz.48b.activities are tailored to the individual needs of customers across all categories:residential,small and medium-sized enterprises,large commercial and industrial,and sales partners.This business division is divided into the Germany,United Kingdom,Netherlands,

175、and Other segments.The latter segment encompasses regional sales activities in Sweden,Italy,the Czech Republic,Hungary,Croatia,Romania,and Poland.One of E.ONs objectives is to enhance its customers satisfaction and work with them to help actively shape Europes energy transition.In addition,the E.ON

176、Groups central commodity procurement entity,E.ON Energy Markets GmbH is reported in the Energy RetailOther segment.Corporate Functions/Other Corporate Functions main task is to lead the E.ON Group.This involves charting E.ONs strategic course as well as managing and funding its existing business por

177、tfolio.Corporate Functions tasks include optimizing E.ONs overall business across countries and markets from a financial,strategic,and risk perspective,and conducting stakeholder management.The E.ON Groups non-strategic activities,such as the dismantling of nuclear power stations(which is managed by

178、 the PreussenElektra unit)and the generation business in Turkey are reported here as well.Strategy4 The situation on Europes energy market stabilized further in 2024.The EU forged ahead with the energy union,which aims to enable a sustainable,secure,and also affordable energy supply.European countri

179、es implemented new measures for the energy transition as well.Examples of these measures in Germany included the revised Building Energy Act,the Climate Protection Act,and the Heat Planning and Decarbonization of Heating Networks Act.The heating transitions significant decarbonization potential make

180、s it a key aspect of the energy transition.It will be one of the big challenges of the decade ahead.The energy transition is the necessary response to climate change and offers Europe and Germany the opportunity to remain competitive and resilientincluding amid political developments.Decisions like

181、the Easter package and the aforementioned examples demonstrate that energy security and digital,resilient energy infrastructure are becoming increasingly important.E.ONs consistent implementation of its strategywhose three key elements are sustainability,digitalization,and growthaims to propel the e

182、nergy transition and decarbonization in Europe.E.ON is thereby playing a leading role,contributing to society,and allowing shareholders to participate in its success.Sustainability Climate protection is one of the key drivers of E.ONs future growth.In 2022 the Science Based Targets initiative(“SBTi”

183、)confirmed that E.ONs near-term climate targets for 2030 are compatible with the Paris climate agreements 1.5 degree target.This means that E.ONs planned Scope 1 and 2 emission reductions are in line with a global emission reduction pathway that limits global warming to 1.5 degrees Celsius above pre

184、-industrial levels.In addition,E.ON is committed to achieving climate neutrality in its Scope 1 and Scope 2 emissions by 2040(and to reducing its Scope 1 and Scope 2 emissions by around 50 percent by 2030).E.ON intends for its Scope 3 emissions to be climate-neutral by 2050(and for these emissions t

185、o be about 50 percent lower by 2030).Digitalization Digitalization is an important focus for E.ON to shape the energy system of the future.E.ON aims to become one of the leading digital energy companies and utilizes a uniform platform architecture so that all its businesses can offer data-driven and

186、 networked solutions.For example,E.ONs ubsidiary E.ON One provides innovative digital energy solutions,particularly for network management,network operations,and energy management.Growth E.ON continues to propel growth across all its business divisionsfor which investments are indispensableand plans

187、 a total of 43 billion for the period 20242028.A significant portion will go toward our networks in order to expand energy infrastructure.The Energy Networks business division increased its investments by about 0.6 billion year on year to 5.8 billion to deliver the network expansion and digitalizati

188、on necessary to achieve climate targets.A large portion of investments in 2024 went toward connecting renewables facilities.We added almost 3,000 employees so that we can continue to install connections in the years ahead.The aim is to efficiently integrate the increasing proportion of renewables fa

189、cilities and new,fluctuating demand into the overall energy system.At the start of 2024,E.ON made its Energy Infrastructure Solutions business division,which is well established in the market,a separate reporting unit.This business division invested 1 billion in the 2024 financial year,including in

190、battery storage solutions and in projects that Combined Group Management Report Corporate Profile Contents Search Back E.ON Integrated Annual Report 2024 29 help decarbonize the energy supply of business customers,cities,and municipalities.The Energy Retail business division focuses on reliable,sust

191、ainable,and affordable offerings for our customers,including solar,home energy management,and eMobility.Micro-flexibility is taking center stage at this business division as well.Digitalization plays an important role in E.ONs success and is founded on technological standards and a clear cloud strat

192、egy.A large proportion of investments in 2024,which totaled 0.5 billion,went toward these areas.We also increased our innovation activities in the digital space.The energy transition requires strong political support and a significant financial commitment from the EU,individual countries,companies,a

193、nd citizens.This applies to infrastructure and networks as well as companies and households.E.ON is well positioned not only to meet the growing demand for sustainable solutions,but also to actively propel the energy transition.The Company benefits from growing demand for green energy in all sectors

194、.Innovation Collaborating in Global Partnership Networks to Promote Innovations in E.ONs Operating Business E.ONs strategywhose key elements are sustainability,digitalization,and growthdetermines the agenda for its innovation activities as well.The focus topics in 2024 were shaping the“future of ene

195、rgy”and the“future of mobility,”in particular by digitalizing and enhancing the resilience of energy networks,by decarbonizing cities,communities,and E.ON customers,and by developing new solutions to expand eMobility.E.ONs innovation approach has three main components:incubation(lead business unit:E

196、.ON Group Innovation),startup financing(Future Energy Ventures),and scale-up(E.ON One).E.ON ensures its innovation strategys implementation through the collaboration of these three innovation units and their close cooperation with E.ONs operating units.E.ON Group Innovation GmbH is our intragroup in

197、cubator and accelerator whose mission is to provide a diverse portfolio of innovations for various E.ON business areas and to develop solutions for emerging markets.Innovative market-ready solutions that cannot yet be integrated into E.ONs existing operating business are spun off by E.ON Group Innov

198、ation as independent ventures.In addition,E.ONs innovation team manages all central startup innovation programs,through which the Group has built up a global innovation ecosystem in recent years that gives it access to leading universities,startups,and partners worldwide.Future Energy Ventures is an

199、 internationally active investment fund that focuses its investments on digital and digitally supported climate technologies that have a high potential to provide new solutions for tomorrows energy world.E.ON is a strategic partner of Future Energy Ventures and thus has direct access to promising st

200、artups worldwide.E.ON One GmbH is a sales platform for market-ready digital solutions.It acquires startups and integrates their technology into E.ONs system architecture to ensure the operational reliability of the digital systems on offer.E.ON One markets these solutions to distribution network ope

201、rators and sales companies in and outside E.ON.It also scales up corporate ventures that emerge from E.ON Group Innovation and finds an effective environment for additional growth.E.ON Demonstrated its Innovativeness in Numerous Areas in 2024 The E.ON Group innovation team brought the Evercharge inn

202、ovation project to market maturity.This corporate venture,which now operates under the Evailable brand,will be transferred to E.ON One to be scaled up.Evailables artificial intelligence(“AI”)software can learn charging stations usage patterns and quickly identify deviations from normal operation.Its

203、 predictive maintenance enables charging station operators to detect a potential fault several days before it leads to a charging station failure.Evailables offerings help charging station operators and manufacturers improve their charging points availability,reduce operating costs,and secure revenu

204、es.Open Innovation Programs with Startups Aim to Foster the Swift Implementation of Innovations E.ON continued to work intensively on its global networks in 2024 and developed new partnerships and expanded existing ones.The Group is convinced that it can better develop new business models that are o

205、f significant importance for E.ONs future business by collaborating with universities and other scientific institutions as well as energy utilities,companies from other industries,and startups in networks of a global innovation ecosystem.This integrated partnership approach enables us to pursue the

206、goal of further expanding E.ONs role as playmaker of the energy transition and extending it to innovation.We generate first-class solutions and new technologies primarily in our established innovation programs:E.ON partners with six leading international energy companies and startups in Free Electro

207、ns,a global startup and accelerator program to find innovative solutions for the energy transition.In 2024,seven solutions were identified in this network that are being tested in five international E.ON companies.For example,we and British startup Allye are testing a new battery storage solution.It

208、 is designed to replace diesel generators during maintenance work and emergencies and to ensure an uninterrupted,sustainable energy supply while safeguarding network stability.E.ON aims to further decarbonize buildings by testing new solutions that use drone and AI technologies to identify problems

209、in the building envelope and quantify energy losses.The product,developed by Canada-based startup Qea,assesses which retrofits make financial sense and proposes targeted measures.We are working with 16 E.ON companies in an innovation program called the Grid Startup Challenge.This is another example

210、of how our global partnership network can provide solutions with which E.ON can improve its networks digitalization and resilience.The focus of our innovation activities in 2024 was on measures to protect critical infrastructure,monitor gas distribution networks,improve customer service quality,and

211、enhance transparency in supply chains.The central innovation team works with our operating units to implement use cases for generative AI and to assess the potential for further innovations.The aim is to better seize the opportunities of digital transformation and to use the latest technologies.Our

212、innovation program for generative artificial intelligence(“Gen AI”)has so far scouted 500 startup solutions worldwide in their existing innovation ecosystem.After identifying 50 Gen AI use cases,in 2024 the innovation team tested solutions for their application in a wide variety of areas.E.ONs centr

213、al Innovation divisions various partnerships and networks have enabled it to initiate a total of 89 pilot projects since 2020.It launched 23 new pilot projects with 17 E.ON business units in 2024 and concluded contracts with startups totaling 10.2 million.Management Control System Our objective is f

214、or E.ON to be the sustainable platform for Europes energy transition and,in line with our strategy,to sustainably enhance our Companys value for the long term.A uniform Group-wide planning and controlling system is used for the value-based management of the Group as a whole and its individual busine

215、sses.This system forms the basis for a uniform mindset Group-wide,while at the same time allowing targeted steering impulses for individual business units.E.ONs Management System Adjusted EBITDA,investments,and earnings per share based on adjusted net income(“EPS“)are the most significant indicators

216、 for managing our aspired sustainable and profitable growth.The use of additional key financial and non-financial performance indicators is intended to ensure that our growth is in line with our stakeholders various interests and enable a holistic view of our performance.In particular,we focus on ou

217、r Combined Group Management Report Corporate Profile Contents Search Back E.ON Integrated Annual Report 2024 30 customers,employees,shareholders,and bondholders always in line with our environmental and social responsibility as a leading international energy company.Furthermore,including key non-fin

218、ancial indicators explicitly anchors sustainability indicators in the ongoing management of our businesses.The following chart summarizes the key performance indicators used for management purposes.In addition to the management system,the compensation system for the Management Board is also designed

219、 to support the implementation of our strategy and thus E.ONs long-term success through the sustainable,long-term,and value-oriented management of the Company.For this reason,the compensation of the members of the Management Board has also been linked to the development of selected key performance i

220、ndicators.Changes were made to the E.ON Groups segmentation in the 2024 financial year(see the Business Model chapter).They had no effect,however,on the key performance indicators used for management purposes.In the 2024 financial year we also for the first time used a sustainable operating tax rate

221、 to calculate adjusted net income.Most Significant Key Performance Indicators With our focus on long-term,sustainable,and value-oriented growth,the most significant key performance indicators are the main metrics for internal management and the assessment of our business development and thus also th

222、e cornerstones of our forecast.Adjusted EBITDA is an earnings figure before interest income,income taxes,and depreciation and amortization that has been adjusted to exclude non-operating effects.The adjustments include net book gains,certain restructuring expenses,effects in conjunction with derivat

223、ive financial instruments,and other non-operating earnings.Therefore,adjusted EBITDA is the indicator of sustainable earnings capacity and the appropriate key figure for determining the performance of our business.Investments are equal to investments in property,plant,and equipment,intangible assets

224、,and share investments as well as,from 2024 onward,expenditures for loans to non-consolidated affiliated companies and other loans that are shown in the E.ON Groups Consolidated Statements of Cash Flows.Investments are the engine for the future growth and digitalization of E.ONs business as well as

225、decarbonization.As a reflection of our strategy,they therefore continue to be a key indicator for managing our activities.Adjusted earnings per share(“EPS”)are equal to adjusted net income divided by the weighted average number of shares outstanding in the financial year.In addition to operating ear

226、nings,depreciation and amortization,interest income,tax and financial results as well as non-controlling interests are included and likewise adjusted to exclude non-operating effects.This allows a holistic assessment of the earnings situation from the perspective of the shareholders of E.ON SE.Signi

227、ficant Key Performance Indicators In order to suitably take into account the interests of our stakeholders in addition to our focus on growth,our management system also includes other significant key performance indicators.As a customer-oriented company,the ability to acquire new customers and retai

228、n existing ones is crucial to our success.Net Promoter Score(“NPS”)measures customers willingness to recommend E.ON to a friend or colleague(the unaudited Customer Satisfaction chapter contains more information).Our Companys attractiveness for investors is reflected in total shareholder return(“TSR”

229、)(see Note 11 to the Consolidated Financial Statements)and dividend per share(“DPS”),which is part of TSR.We have made sustainability the core of our corporate strategy.In everything we do,we keep in mind the consequences of our actions.The progression of our carbon footprint(the unaudited Climate P

230、rotection chapter contains more information),the frequency of serious incidents and fatalities(“SIF”)(the unaudited Occupational Health and Safety chapter contains more information),and the proportion of women managers are thus significant key performance indicators and part of our management system

231、.In addition,our ESG ratings are incorporated into our management system.This provides a comprehensive assessment of our actions with respect to environmental,social,and governance matters.Solid financing of our business activities is of great importance to realize our aspired long-term and sustaina

232、ble growth in line with the fulfillment of our financial ambitions.For this reason,cash-conversion rate,which is an indicator of E.ONs ability to transform operating earnings into cash inflows,and debt factor,which is a proxy for our capital structure and ratings,are significant key performance indi

233、cators in our management system.In addition,ROCE is included in the management system as a key performance indicator to assess the efficiency of capital employed.Other Key Performance Indicators Alongside the performance indicators described above,other financial and non-financial indicators play a

234、role in the success of our business and our corporate responsibility.Operating cash flow,power and gas wheeling volume,sales volume,as well as selected employee-related information are examples of other key performance indicators.Combined Group Management Report Sustainability Statement Contents Sea

235、rch Back E.ON Integrated Annual Report 2024 31 Sustainability Statement General Information E.ONs Approach to Sustainability +Sustainability Governance and Management We have clearly organized responsibility for sustainability.This ensures that we can work together efficiently and improve continuall

236、y.The E.ON Management Board defines our sustainability strategy and bears overall responsibility for the results of our sustainability activities.We have appointed a Chief Sustainability Officer(“CSO”)to manage and monitor sustainability activities throughout the company.Our CSO is Leonhard Birnbaum

237、,E.ONs Chief Executive Officer.He informs the Management Board on a quarterly basis about important initiatives,developments,and key performance indicators;he likewise informs the Supervisory Board and its Committees.The CSO chairs our Sustainability Council,which consists of the CFO senior managers

238、 from Corporate Functions,our units,and central functions who have expertise in sustainability issues.The Sustainability Council serves as a forum for doing preparatory work for decisions by the Management Board and its members,sharing information,discussing progress made toward achieving our sustai

239、nability goals,and identifying new challenges.It provides advice on company policies related to sustainability issues and periodically assesses whether our sustainability strategy is aligned with our vision,corporate strategy,and brand identity.The council also works with outside stakeholders to hel

240、p us forge new partnerships and consider different interests.The Disclosure Committee,which likewise deals with the Sustainability Statement in the Integrated Annual Report,is responsible for issues relating to the publication of information relevant to financial markets.The Sustainability Council m

241、et three times in 2024.The issues it discussed included E.ONs annual ESG performance and measures for its further improvement.Decarbonization in the context of the heating transition was also on the agenda in 2024.The Sustainability and Climate department at Corporate Functions is involved in all as

242、pects of our strategic sustainability activities.Together with the Sustainability Council,it also supports our business units in achieving their sustainability targets.This department is part of the Strategy,Sustainability,and Innovation division in order to align the Groups general strategic course

243、 even more closely with sustainability and climate protection.Group Accountings ESG Reporting department organizes and coordinates Group-wide sustainability reporting.E.ON has an ESG reporting manual.The manuals detailed descriptions and requirements guide the units in collecting and reporting ESG k

244、ey performance indicators(“KPIs”).Both teams also advise our employees and work to reinforce awareness of sustainability issues across the organization.In addition,they inform the Supervisory Board on a regular basis.Integrating the Sustainability department into the Strategy division ensures that t

245、he Management Board considers key sustainability issues in the context of corporate strategy(see also the Strategy chapter).Another example is the requirement for our central Health&Safety department to be involved in M&A activities.Sustainability has also played an integral role in the E.ON Groups

246、risk management for many years.The Risks and Chances Report and the Climate Protection chapter describe this in detail.When we talk about sustainability or material sustainability topics in this and the following sections,we are referring in particular to the material impacts,risks,and changes that

247、we identified in the materiality analysis.The“Double Materiality Analysis”and“Sustainability:an Integral Component of E.ONs Business Model and Strategy”sections below contain more details.Close Collaboration with the Supervisory Board The Supervisory Board is informed on a regular basis about the re

248、sults of our sustainability activities by the Management Board.The Innovation and Sustainability Committee advises the Management Board on innovation topics and growth opportunities as well as on the digital transformation.The committee also advises the Supervisory Board and the Management Board on

249、environmental,sustainability,and social issues.For its part,the Audit and Risk Committee oversees and reviews Sustainability Statement.The committees tasks are described in their respective Rules and Procedures.The two committees are supported by information prepared and provided by the Strategy,Sus

250、tainability and Innovation,and Group Accounting departments.In 2024 the Innovation and Sustainability Committee dealt not only with E.ONs sustainability targets and performance and ratings and its position in leading sustainability rankings but also with its anticipated initial reporting pursuant to

251、 the CSRD.It focused in particular on developments relating to regulatory ESG requirements at the European and global level and with E.ONs implementation of them.It addressed the climate transition,climate targets,and biodiversity as well.The Audit and Risk Committee was likewise informed on a quart

252、erly basis about material sustainability topics,particularly in the context of sustainability reporting.In 2023,for example,we presented the CSRDs different materiality definitions compared with the Non-Financial Statement and their impact on E.ONs reportable sustainability topics and sustainability

253、-related material impacts,risks,and opportunities.Our final analysis and its implementation in 2024 drew on the committees feedback.At other meetings,the committee was regularly informed on the latest findings regarding the CSRDs transposition into German law,its impact on Group companies,and the st

254、atus of implementing its requirements in the E.ON Group.The Supervisory Boards role relating to the CSRD was another focus topic.Furthermore,the committee assigned to the independent auditor the task of conducting the voluntary audit of E.ON SE and the E.ON Groups combined Non-financial Statement as

255、 well as the audit of mandatory non-financial disclosures in accordance with the EU Taxonomy Regulation and of additional sustainability information integrated into the Combined Group Management Report.The committee also assigned the task of the sustainability auditors audit services in the event of

256、 Germanys anticipated transposition into law of European sustainability reporting requirements.Composition,Diversity,and Competency of the Management Board and Supervisory Board In 2024 the Management Board consisted of five members of whom one was Chairman;the Supervisory Board had 16 members.Pursu

257、ant to E.ON SEs Articles of Association,the Supervisory Board is composed of an equal number of shareholder and employee representatives.Women make up 40 percent of the Management Board since June 2024.The proportion of women among the Supervisory Boards shareholder representatives is 38 percent;the

258、 proportion for the Supervisory Board as a whole is 38 percent.All Supervisory Board members were independent at the end of the 2024 reporting year.When appointing members of the Management Board,the candidates outstanding professional qualifications,long-term leadership experience and past performa

259、nce,as well as value-driven management are of paramount importance.Members are to be capable of taking forward-looking strategic decisions.In particular,they should be capable of managing businesses sustainably and of ensuring that they are consistently focused on customer needs.The Management Board

260、 as a whole must have expertise and experience in the energy sector as well as in the fields of finance and digitization.Management Board members should be leaders and as such should act as role models for employees through their own performance and conduct.Energy-industry and digitalization issues

261、intersect with key sustainability topics,particularly in the context of climate protection,energy affordability,and security of supply,but also cybersecurity and dialogue with policymakers.The key topic of sustainable financing is considered as well.Attention is paid to diversity when appointing mem

262、bers of the Management Board.For the Supervisory Board,diversity means,in particular,different complementary academic profiles,professional and personal experience,personalities,as well as internationality and a reasonable age and gender structure.To ensure sustainable corporate governance,the selec

263、tion process also takes into account sustainability aspects that enable candidates to make strategic and operational business Combined Group Management Report Sustainability Statement Contents Search Back E.ON Integrated Annual Report 2024 32 decisions.The appointment period of a member of the Manag

264、ement Board ends,at the latest,at the end of the month on which the Management Board member reaches the general retirement age.The Supervisory Boards composition reflects the requirement that members have specific knowledge is required regarding the energy sector,the sales and customer business,and

265、regulated industries.Independence and diversity play a role as well.Alongside other extensive experience that must be represented on E.ONs Supervisory Board,the following play a special role in the context of the Groups material sustainability issues:specific knowledge in the areas of new technologi

266、es,digitization and IT,innovation and disruption knowledge of the functioning of the capital and financial markets special knowledge of the application of accounting principles and internal control and risk management systems,and knowledge and experience in auditing specific knowledge in the field o

267、f sustainability,specifically in the dimensions of environmental concerns(especially the reduction of CO2 emissions),employee and social concerns as well as human rights and anti-corruption specific knowledge in the areas of human resources and cultural change as well as law and compliance experienc

268、e as a Management Board or Supervisory Board member in the strategic management or supervision of listed organizations.The Supervisory Board believes that its current members meet the requirements of its competency profile;for example,about 80 percent of Supervisory Board members currently have sust

269、ainability competencies.In accordance with Principle 23 of the German Corporate Governance Code in the version dated April 28,2022,the Corporate Governance Declaration is the central element of corporate governance reporting.The Corporate Governance Declaration,which the E.ON SE Management Board and

270、 Supervisory Board issue annually in accordance with Sections 289f and 315d of the German Commercial Code(“HGB”),contains more information.Sustainability as a Component of Compensation The presentation of the compensation system and the current Compensation Report provide comprehensive commentary on

271、 the principles and structure of the compensation of the E.ON SE Management Board and Supervisory Board.The Management Boards compensation system takes full account of the aforementioned aspects and represents an important governance element for the implementation of corporate strategy.Management Bo

272、ard compensation is linked to E.ONs performance to a high degree and has a clear pay-for-performance orientation.The compensation system provides an incentive for successful and sustainable corporate governancewhich also takes into account the ESG aspects relevant to E.ONand links Management Board m

273、embers compensation to the Companys short-term and long-term performance.In designing and determining Management Board compensation,the Supervisory Board follows in particular by the following principles:promote the corporate strategy,conformity with regulatory requirements,appropriateness of compen

274、sation,pay-for-performance,long-term business development,sustainability,and consideration of shareholder interests.The Supervisory Board as a whole is responsible for determining the compensation system as well as the level and structure of Management Board compensation.The compensation system for

275、the members of the Management Board is determined by the Supervisory Board in accordance with Section 87,Paragraph 1,and Section 87a,Paragraph 1 of the German Stock Corporation Act(German acronym:“AktG”)on the basis of a proposal by the Executive Committee.After the Supervisory Board passes this res

276、olution,the compensation system is submitted to the Annual Shareholders Meeting for approval.The Supervisory Board reviews the compensation systems structure,the appropriateness of total compensation,and the individual compensation components on a regular basis in accordance with the AktGs requireme

277、nts and the German Corporate Governance Codes recommendations.In the event of significant changes,but at least every four years,the compensation system is resubmitted to the Annual Shareholders Meeting for approval.In accordance with the compensation system presented to the Annual Shareholders Meeti

278、ng,the Supervisory Board sets the specific target compensation for members of the Management Board for each financial year.Furthermore,the Supervisory Board sets the target values for the upcoming financial year that are used to measure the Management Boards performance for the performance criteria

279、defined in the compensation system.Management Board compensation consists of non-performance-based and performance-based compensation components.The performance-based components consist of a base salary,fringe benefits,and a pension substitute,while the performance-based components include the annua

280、l bonus and long-term variable compensation in the form of the E.ON performance plan.In addition,other compensation provisions exist for Management Board members,including share ownership guidelines and malus and clawback provisions.Overall,the compensation system is based on transparent,performance

281、-related parameters geared toward the Companys success and aims to offer competitive and performance-oriented compensation in line with the market.The Supervisory Board also ensures that the compensation system for the Management Board and executives provides uniform incentives for the joint impleme

282、ntation of the corporate strategy and pursues the same objectives.E.ONs sustainability strategy is incorporated into Management Boards compensation system by means of Net Promoter Score and the agreement of collective and individual targets in individual performance factors included in short-term va

283、riable compensation(annual bonus),but in particular also by means of the E.ON Sustainability Index in the long-term variable compensation(E.ON Performance Plan).The proportion of sustainability-related variable compensation in relation to total variable compensation for the 2024 financial year amoun

284、ted to 23 percent for the Management Board Chairman and likewise 23 percent for ordinary Management Board members.The proportion of climate-reduction target-related compensation in relation to total remuneration for the 2024 financial year amounted to 3 percent for the for the Management Board Chair

285、man and 2 percent for ordinary Management Board members.The E.ON Sustainability Index is a component of the E.ON Performance Plan,long-term variable compensation that is allocated in annual tranches.The ESG aspects in this plan have comprehensible and measurable targets.For each tranche,the Supervis

286、ory Board determines the specific target values for each target and the respective target achievement curves for the tranches entire term.Depending on target achievement,up to 50 points are awarded for each target;at most,double the target values is possible.In determining the targets for the eighth

287、 trance of the E.ON Performance Plan(20242027),the Supervisory Board retained the ESG aspects as already included in the E.ON Sustainability Index of the seventh tranche as well as its targets:reduce carbon emissions(Scope 1 and 2)toward the Groups target for 2030 increase the proportion of female e

288、xecutives toward 27.5 percent reduce the frequency of severe incidents and fatalities(“SIF”)toward 0.06 percent achieve a stable performance in the ESG ratings by MSCI,Sustainalytics,and ISS ESG.Target achievement for the E.ON Sustainability Index can range from 0 percent to 200 percent(cap)and is c

289、alculated based on the total points achieved at the end of the performance period.Total target achievement of the E.ON Performance Plan is calculated as a weighted average of the target achievement for each performance criterion.Double Materiality Analysis E.ON has conducted an annual materiality an

290、alysis since 2006.It did so in 2024 for the first time in accordance with ESRS requirements.The materiality analysis enables us to identify and evaluate the sustainability topics that are most important to us and our stakeholders.Pursuant to Combined Group Management Report Sustainability Statement

291、Contents Search Back E.ON Integrated Annual Report 2024 33 ESRS requirements,dual materiality refers to the materiality of environmental and social impacts and financial materiality.A sustainability topic therefore fulfills the criteria of dual materiality if it is material either from an impact per

292、spective or from a financial perspective or from both of these perspectives.The Sustainability Statement,which is integrated into the Combined Group Management Report,contains information on the ESG topics that the materiality analysis deemed to be particularly significant.The Sustainability Stateme

293、nt also addresses voluntarily reported sustainability topics.E.ON thus aims to meet the different expectations of stakeholders as well as the requirements of environmental,social,and governance(“ESG”)rankings and ratings.The end of this section provides an overview of the material and less material

294、topics.The process has the following steps:Understand E.ONs Business Model,Value Chain,and Main Stakeholders The first step was to identify fully consolidated business activities and relationships,relevant resources,and countries.We then identified these business activities entire relevant value cha

295、inthat is,upstream and downstream activitiesas well as activities in our own business operations.We analyzed all business divisions and their key activities in detail.For example,we also took into account the fact that the value chains of our power and gas activities differ and respectively procure

296、different goods and services from different countries.This enabled us to ensure that in our subsequent identification and evaluation we factored in regional differences and valued different segments assets separately.The next step was to examine whether E.ON has any not fully consolidated subsidiari

297、es that have different business activities that need to be accounted for separately.Finally,relevant specialist departments helped identify key stakeholder groups.E.ON did not actively involve external stakeholders in the materiality analysis for the 2024 reporting year,because our specialist depart

298、ments conduct extensive dialogue with identified stakeholder groups during the year(see,for example,the Stakeholder Engagement chapter).Instead,representative specialist departments assumed the position of the respective stakeholder group in the validation phase of the analysis.Identify Impacts,Risk

299、s,and Opportunities E.ON first gathered information and evidence on potentially material topics.We consulted a variety of sources,including regulations(particularly the ESRS,namely ESRS 2,Appendix A),sustainability reporting standards,risk indices,sector-specific criteria,ESG ratings,and peers.These

300、 were then compared and combined with our existing material topics and collated.Relevant central specialist departments and our regional units ESG reporting experts reviewed this long listwhich is a list of potential sustainability issues and/or impacts,risks,and opportunities(“IROs”)and checked it

301、for completeness.Additions proposed by the specialist departments and units were included for further analysis and added to the long list.Including the units enabled us to ensure that we not only considered regional particularities but also benefited from operational expertise.Supported by specialis

302、t departments(among others:Sustainability,HR,Health&Safety,Governmental Affairs),we then compiled an overview of possible material sustainability aspects.We divided them into impacts on people,impacts on the environment,risks,and opportunities and reviewed in which of E.ONs segments they occur or co

303、uld occur.We also differentiated by power and gas.Impacts can be positive or negative,actual or potential.Sustainability aspects that create risks or opportunities that have or are expected to have a material financial impact on E.ON are deemed material from a financial perspective.We considered sho

304、rt-,medium-,and long-term time horizons.In addition,we included not only our own business activities,but also our upstream and downstream value chain.Our identification of risks and opportunities also takes into account potential dependencies on natural,human,and social resources as well as their av

305、ailability and quality.We used a variety of topic-specific processes to identify material impacts,risks,and opportunities relevant for E.ON.The Climate Protection chapter and Risks and Chances Report describe these processes for climate change,such as scenario analyses of physical and transitory cli

306、mate risks.The Environmental Management chapter describes the consideration of specific requirements for the aspects of environmental pollution,water and marine resources,biodiversity and ecosystems as well as resource use and circular economy.We worked closely with relevant specialist departments f

307、or sustainability,HR,Health&Safety,and the segments to identify social and human rights impacts,risks,and opportunities.We drew in particular on the expertise of the Compliance and Government Affairs departments for governance topics.Assess Impacts,Risks,and Opportunities We defined an evaluation me

308、chanism(which implements ESRS 1s criteria)for the subsequent assessment of impacts,risks and opportunities.To ensure that the assessment by our specialist departments and units reflects the level of detail required by the ESRS,we have placed the criteria defined for impacts,risks,and opportunities o

309、n a scale of 1 to 5 to use for assessing materiality.We conducted information events and explained the assessment mechanism described below so that everyone involved understands their tasks related to assessing impacts,risks and opportunities and so that we obtain meaningful results.The impacts were

310、 assessed by the responsible central specialist departments as well as regional sustainability strategy and ESG reporting experts,but also by other specialist departments at the units.They were able to base their assessment on,for example,regional sustainability strategies,findings from projects,coo

311、peration with trade associations,regional requirements,and their own expert knowledge.To support the specialist departments and units in their assessment and to obtain comparable results,we provided additional guidance for how to apply each scale.This included a qualitative explanation for assessing

312、 the scales values.For example,in the assessment of the“Extent”criterion,1 stood for“There is no or only minor damage or added value”and 5 for“The resulting damage or added value is extremely significant.”We did the same for the other criteria(scope,irreversibility,and probability),although the expl

313、anations for each scale of 1 to 5 were adapted individually.Finally,we calculated mean values from the individual criteria;these mean values were then included in the assessment of the impact as an overall score.The units supplemented their quantitative assessment with a brief written explanation.De

314、centralized sustainability strategy and ESG reporting experts as well as other specialist departments(particularly the Risk function)likewise assessed the identified risks and opportunities to determine sustainability aspects have or could have a material financial impact on E.ON.The extent of the p

315、otential financial impact was measured on a scale of 1 to 5.The general criteria and underlying thresholds(value classes)of the E.ON-wide enterprise risk management(“ERM”)process served as guidance for the assessment(the Risks and Chances Report provides additional information on the methodology of

316、E.ONs risk and chances reporting system).The decentral units were instructed to use,in particular,the ERMs findings because E.ON has already integrated reporting on ESG-related non-financial risks,opportunities,and impacts on the Group into the ERM.The ERM system identifies all ESG-related risks and

317、 opportunities;these are assessed each quarter as part of the ERM process.We are currently fine-tuning our approach.We are aiming for synergies between the Sustainability and Risk departments as well as the involvement of foresight teams.Due to the extensive knowledge gained from the implementation

318、and risk analysis of the German Supply Chain Due Diligence Act,the units feedback on human rights issues was already available centrally.Central Procurement also supported the assessment of upstream impacts,risks,and opportunities.The final step was to consolidate the specialist departments and dece

319、ntral units feedback.In assessing IROs,we also considered potential effects,risks,and opportunities relating to the dismantling of PreussenElektras nuclear power plants.Although together with local experts we have come to the conclusion that no aspects have been identified as material at the Group l

320、evel,we delineate the basic processes below.The overriding principle for the planning and implementation of dismantling is to protect employees,the population,and the surrounding area.The requirements for safe working during dismantling are just as high as those for power operations.In other words,a

321、ll work is carefully planned,supervised by radiation protection experts,and inspected by the regulatory agencys independent experts or by PreussenElektra itself.After fuel elements have been Combined Group Management Report Sustainability Statement Contents Search Back E.ON Integrated Annual Report

322、2024 34 removed and unloaded,only 1 percent radioactivity remains for a plants subsequent dismantling.To protect against this remaining radioactivity,we take extensive measures during dismantling to minimize radiation exposure,for example by means of primary circuit decontamination or remote dismant

323、ling under water.Define the Materiality Threshold and Validate the Material Impacts,Risks,and Opportunities E.ON defined a materiality threshold for the purpose of differentiating material impacts,risks,and opportunities from those that are non-material.Impacts,risks,and opportunities that exceeded

324、this threshold for one of the two perspectives were deemed material within the meaning of the ESRS.In consultation with the specialist departments involved,the threshold 3.0 on the assessment scale used was selected for impacts,risks,and opportunities.This threshold was considered appropriate becaus

325、e it is exactly in the middle of the 1-to-5 scale and thus enables an objective differentiation between material and non-material aspects.We conducted workshops with the above-defined stakeholder groups in-house proxies for the purpose of validating the Group-wide assessments findings centrally and

326、ensuring that the list of material impacts,risks.and opportunities is correct and complete.Each stakeholder group could use a correction factor to adjust the findings.Impacts,risks,and opportunities ultimately deemed material during the validation process were assigned to topic clusters and to the r

327、elevant ESRS disclosure requirements to be reported.Our CEO/CSO and CFO then reviewed and approved the selection of the threshold,the topic clusters identified as material,and the resulting reporting obligations.In addition,we consulted the Supervisory Boards Audit and Risk Committee prior to the Ma

328、nagement Boards final approval.There was also an information sharing about the materiality analysis with the Group Works Council and the European Works Council.Material impacts,risks,and opportunities were identified for the following topics,which we assigned to topic clusters,as shown on the next p

329、age:As anticipated,compared with the findings of our last materiality analysis,the number of material topics has increased.As in prior years,the topics of climate protection,affordable energy,and security of supply were again identified as material,whereas in the 2024 reporting year the topics of oc

330、cupational safety,political dialogue,sustainable investment,and cybersecurity were deemed material for the first time.E.ON subjects the materiality analysiss findings to an annual review in order to check the topicality and relevance of the impacts,risks,and opportunities deemed material.As we had a

331、lready conducted the above-described materiality analysis in 2023,we reviewed its findings again in 2024 and had their validity confirmed by the Sustainability Council.Combined Group Management Report Sustainability Statement Contents Search Back E.ON Integrated Annual Report 2024 35 Section Materia

332、l Sustainability Aspects(IROs)Disclosure Requirements Chapter General Information ESRS 2 E.ONs Approach to Sustainability1 Environmental Management2,E.ONs Approach,Specific actions Climate Protection and Environmental Management Climate Protection,Digitization,and Innovation ESRS E1-1 E1-9 Climate P

333、rotection1,4 Sustainable Products and Services4 E.ONs investments to expand and digitalize its networks and to connect renewables facilities on an ongoing basis enable Europes energy transition and give customers access to sustainably produced energy(opportunity).At the same time,using smart grid technologies and detecting operational faults early make it possible to reduce the carbon emissions fr