Egyptian Electricity Holding Company

EEHC has not set any emissions reduction targets and does not have plans to develop any. The company should develop a long-term emissions target that aligns with its 1.5°C pathway. Additionally, it should set intermediate targets at gaps of no more than five years to incentivise near-term action on the longer-term goal. The company should also clearly report its base year emissions and any offsetting it intends to use to allow for a complete analysis of its targets and progress against them.

EEHC reports that part of its objectives as an electricity production company is to conduct research and development (R&D) related to the company’s activities. However, it does not disclose the technologies or power generation applications it is researching or report financial information on its R&D investments with the potential to mitigate climate change. R&D into low-carbon technologies will be essential for EEHC to develop a low-carbon product portfolio and be successful in a low-carbon economy. To meet sectoral-level expectations, at least 80% of EEHC’s total R&D investments should be dedicated to low-carbon technologies and energies.

EEHC has not implemented board-level oversight of climate change. Moreover, the company has not disclosed a low-carbon transition plan or demonstrated an intention to develop one in the future. The company should establish a time-bound action plan that outlines how it will transition to a low-carbon economy. This should include medium- and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. Further, the plan should be informed by scenario analysis to ensure that its ambition aligns with a 1.5°C pathway.

EEHC has not set any emissions reduction targets. EEHC’s “8th Five Year Plan (2022-2022)” aims to implement the 2,400 megawatts (MW) pumped-storage hydropower plant at Attaqa Mountain. EEHC also aims to install an additional 1,495,000 smart meters over the next five years, reaching a coverage of 4.8% of its customers.

EEHC does not have a transition plan. The company reports supporting and delivering on the Egyptian Ministry of Electricity and Renewable Energy’s target to achieve 20% of peak load energy through renewables by 2022, and up to 42% by 2035. However, it has not set out a plan outlining how it aims to achieve these objectives.

EEHC invested about 91% of its total CapEx on fossil fuel electricity generation in 2020-2021, with fossil fuels delivering about 88% of the company’s generated electricity. Renewable energy only accounts for about 10% of the company’s generation capacity. EEHC’s low-carbon business models involve rolling out smart meters, establishing control centres to enhance its distributed network and expanding its renewable generation capacity, but it lacks objectives supporting the latter.

Due to EEHC’s lack of reported data, modelled emissions intensities were used. Based on this modelled data, EEHC did not reduce its emissions intensity at a sufficient rate to align with its 1.5°C pathway. Between 2017 and 2022, the proportion of EEHC’s low-carbon electricity generation has remained relatively constant.

Supporting Egypt’s commitment towards the Paris Agreement, EEHC discloses that it will stop constructing coal power plants. However, the company has not disclosed a timeline for this and there is no indication that it plans to phase out coal in the long term. Even though EEHC reports supporting the Ministry of Electricity and Renewable Energy’s target to achieve up to 42% renewable peak load energy by 2035, the company does not have objectives to expand its own renewable energy generation capacity.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to provide training opportunities for workers and affected stakeholders. For instance, it provides funding for training to workers and communities. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to re- or up-skill.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

No policies or commitments of the company related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

No evidence of the company s policies or commitments related to key decent work issues were found in the public domain. These issues include the provision of secure, safe and healthy workplaces, where workers are fairly renumerated and have a meaningful say in decision-making.

No policies or commitments of the company related to key ethical business topics personal data protection, tax, bribery and corruption, and lobbying and political engagement were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners.