RWE

RWE introduced a carbon accounting tool to improve transparency in emissions accounting in its supply chain. The company’s supplier qualification process includes the evaluation of suppliers’ environmental commitments. While public greenhouse gas (GHG) reporting isn’t mandatory, RWE requires both new and existing suppliers to report their emissions, covering 99% of RWE’s procurement expenditures. It also collects information from suppliers annually and integrates decarbonisation goals into procurement documents. The company can improve by evaluating the impact of its supplier engagement activities in quantitative terms.

In 2022 RWE invested about 78% of its capital expenditure (CapEx) in low-carbon technologies. This figure excludes investments in fossil gas. Though the company’s emissions intensity decreased between 2017 and 2022 due to an increased share of low-carbon generation, the rate of reduction is not aligned with the company’s 1.5°C pathway. RWE must accelerate its rate of reduction by 2 times its historical trend to meet its decarbonisation pathway.

RWE conducted a review of 63 industry associations to ensure alignment with its climate objectives. The review was primarily focused on renewable energy associations. Despite this, RWE is still a member of associations such as Eurocoal and Eurogas which hold negative climate positions. RWE publicly supports the Paris Agreement and advocates for reforms in the EU Emissions Trading System. However, it has also expressed support for fossil gas. The company can improve by extending the scope of its industry associations review and developing a process to withdraw from associations whose positions are not aligned with the Paris Agreement goals.

RWE aims to become net zero by 2040. The company’s medium-term targets include a 50% reduction in scope 1 and 2 emissions intensity by 2030 compared to 2019, and a 30% reduction in scope 3 absolute emissions within the same timeframe. These interim targets have been validated by the Science Based Target Initiative (SBTi) as aligned with a well-below 2°C scenario.

RWE plans to significantly increase its electricity generation from renewable energy sources. This includes plans for increasing its combined offshore and onshore wind power to 20 gigawatts (GW) by 2030 compared to just above 11 GW in 2022. The company also plans to increase its solar power generation to 8 GW in 2030 compared to under 1 GW in 2020. Further, it aims to grow its battery storage capacity to 3 GW by 2030. RWE is planning to exit coal power generation by 2030, which is eight years earlier than the company previously announced.

In 2022, RWE invested about 78% of its CapEx in low-carbon technologies, which meets the sectoral expectation. However, the company is also investing in the construction of fossil gas-fired power plants. Moreover, RWE is required by law to decommission its nuclear plants. Nevertheless, RWE is investing in the research and development (R&D) of floating offshore wind turbines, floating solar panels and biomass with carbon capture and storage (CCS).

The company’s emissions intensity decreased between 2017 and 2022 due to an increasing share of low-carbon electricity generation.

Though RWE is allocating funds to low-carbon technologies and innovations, decreasing emissions intensity at a rate required by its 1.5°C pathway still might prove challenging for the company. Further, while the company aims to exit coal power generation by 2030, it is investing in the construction of fossil gas-fired power plants, which is inconsistent with its net-zero ambition.

No evidence was found to show the company’s commitment to social dialogue or disclose 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.

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 come up with new jobs and solutions for employees who will be negatively affected by the 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 re- and up-skilling and training opportunities for workers and affected stakeholders. For instance, the company trains its younger employees and offers a wide range of courses for upskilling purposes. 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. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. The company does, however, contributes to social protection in some locations where it operates.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 commits to respecting human rights and the ILO fundamental rights at work. However, it can strengthen its disclosure on its human rights due diligence process and engagement with affected stakeholders.

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 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 some indicators of workforce diversity, including age and gender. However, no relevant disclosure was found of additional indicators of workforce diversity. Nevertheless, the company commits to gender equality and women’s empowerment.

The company commits to protecting personal data. However, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. While the company discloses its global tax strategy, no relevant disclosure was found of the corporate income tax paid for each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. Furthermore, the company has a lobbying and political engagement policy, and it specifies that it does not make political contributions. Yet, no relevant disclosure was found of the company’s expenditure on lobbying activities.