EnBW Company

Beyond its electricity generation business, EnBW operates several businesses that enable the low-carbon transition. For example, it operates electric vehicle (EV) charging stations across 17 countries in Europe, including the largest quick-charging network in Germany. In addition, the company is improving the flexibility of the grid through its subsidiary SENEC, which sold 58,000 home battery storage systems for solar power and installed 200 megawatts (MW) of solar power capacity. In addition, the company’s subsidiary TransnetBW plans to build one of the world’s largest battery storage systems, the 250 MW ‘Netzbooster’, which it aims to complete in 2025.

EnBW has a target validated by the Science Based Targets initiative (SBTi) to reduce its scope 1, 2 and 3 (category 3) emissions intensity by 87.4% by 2035 from 2018 levels. The company has also set near- and mid-term intermediate targets to reduce its absolute scope 1 and 2 emissions by 50% by 2027 and 70% by 2030 compared to 2018. These targets exclude the use of offsets. However, the company has committed to achieving carbon neutrality with the use of offsets by 2035. To align with a 1.5°C future, EnBW should aim for net zero by 2035 with minimal use of offsets.

Between 2017 and 2020, EnBW’s emissions intensity decreased significantly due to a reduction in its coal-based energy generation and an increase in wind-based energy. However, the company’s emissions intensity increased significantly between 2020 and 2022 due to an increased share of coal generation and the phasing out of nuclear power in line with the German government’s decision to phase out nuclear energy by the end of 2022. EnBW’s intention to reduce coal capacity and increase renewables is projected to reduce its emissions intensity by approximately 25% between 2022 and 2027. However, the company must reduce its emissions intensity by approximately 55% to align with its 1.5°C pathway in 2027.

EnBW has published a comprehensive transition plan which provides time-bound actions to increase its renewables capacity, phase out coal and, in the long-term, switch its gas plants predominantly to green hydrogen produced from electrolysis. The company’s plan is informed by a detailed scenario analysis, which uses four scenarios, including one which is 1.5°C-aligned. The company’s 2025 strategy states its plans to invest USD 14.8 billion on expansion of grids, renewables and hydrogen-ready gas plants. The company can improve its transition planning by providing financial information beyond 2025, covering the expected costs of its long-term transition.

EnBW plans to switch three coal plants to gas by 2026 and entirely phase out coal by 2028, a decade ahead of Germany’s plan. By 2025, the company aims to double its wind power capacity to 4 gigawatts (GW) and add 400 MW of solar power capacity. In joint partnership with bp, EnBW will construct a further 5.9 GW capacity of offshore wind power by 2028. From 2027 to 2030, EnBW aims to make its gas plants hydrogen ready and shift to hydrogen use instead of gas by 2035. Achieving this transition relies on significant hydrogen production and pipeline growth, potentially risking EnBW’s ability to transition over the long term. The company can reduce this reliance by prioritising wind and solar power expansion.

EnBW has an SBTi-validated target to reduce its scope 1, 2 and 3 (category 3) emissions intensity by 87.4% by 2035 from 2018 levels. The company has also set near- and mid-term intermediate targets to reduce its absolute scope 1 and 2 emissions by 50% by 2027 and by 70% by 2030 compared to 2018. Additionally, the company has committed to phase out coal by 2028.

EnBW plans to almost double its wind and solar power capacity by 2025 and construct an additional 5.9 GW capacity of offshore wind power in a joint venture with bp by 2028. It also intends to decommission 2 GW of its coal power capacity and switch from coal to gas at three power plants by 2026. By 2028, the company aims to phase out coal, a decade before Germany’s coal exit plan. Between 2027 and 2030, the company plans to make its gas plants hydrogen ready and switch to hydrogen by 2035.

In 2022, EnBW generated 11,744 gigawatt-hours (GWh) of its total energy from renewables (28%) and 9,390 GWh (22%) from nuclear sources. However, 16,954 GWh (40%) of its total energy was generated from coal. In April 2023, the company closed its last remaining nuclear plant as part of the Germany’s nuclear phase-out. The company invested USD 2.7 billion on low-carbon capital expenditure (CapEx), representing 82% of its total CapEx spending.

Between 2017 and 2022, EnBW’s share of wind and solar power generation tripled to 15%. However, after falling between 2017 and 2020, EnBW’s emissions intensity significantly increased from 2020 to 2022. This was due to the company phasing out nuclear power generation in Germany and increasing its use of coal from 20% of its energy generation mix in 2020 to 40% in 2022. EnBW states that the increase in coal was a result of energy security concerns.

EnBW plans to rely on offsets to achieve carbon neutrality by 2035, when it should aim for net zero with minimal use of offsets. Furthermore, the company has an ambitious commitment to phase out coal by 2028, but it is planning to increase its gas use in the long term before converting its gas power to hydrogen by 2035. It states that it will predominantly use green hydrogen produced from electrolysis. To align with a 1.5°C future, and reach net zero by 2035, the company will rely on a significant increase in green hydrogen production.

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 just transition planning to mitigate the social impacts of the low-carbon 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 just transition planning.

The company has a commitment to create and support access to green and decent jobs as part of the low-carbon transition. Furthermore, it discloses the actions it takes to enable workers from its conventional energy generation projects to build their skills in renewable energy production. However, no relevant disclosure was found of the company’s actions 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 offers upskilling and other development opportunities. 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 reskill or upskill.

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.

The company has a grievance mechanism available to workers and external stakeholders. However, no other company policies or commitments 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.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. However, no evidence was found of the company having a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company discloses only some indicators of workforce diversity. Nevertheless, the company commits to gender equality and women’s empowerment.

The company discloses its global tax strategy, its processes to identify its bribery and corruption risks, and its lobbying expenditures. However, the company can strengthen its disclosure on these subjects and other key ethical business topics, including personal data protection.