Integrated Annual Report 2024
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E.ON Integrated Annual Report 2024
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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.
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E.ON Integrated Annual Report 2024
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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
protection. 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
Infrastructure 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 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.ON’s activities in its Energy
Retail business division are geared
toward the individual needs of residential
customers, business customers, and sales
partners.
We ensure that new energy works
E.ON—with its Energy Networks, Energy
Infrastructure Solutions, and Energy Retail
business divisions—is one of Europe’s largest
energy companies. Our 1.6 million kilometers
of energy distribution networks and roughly
47 million customers give us a leading role in
shaping a green, digital, and decentralized
energy world.* It’s on us: to make new energy
work.
*These disclosures include Turkey and Slovakia.
About E.ON
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E.ON Integrated Annual Report 2024
4
Business Highlights
5
To Our Investors
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 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
Consolidated Financial Statements
132
Consolidated Statement of Income
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 auditor’s report
211
Assurance 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
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E.ON Integrated Annual Report 2024
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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
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.ON‘s
pacesetting role in energy-network efficiency
Debt factor of 4.5 at year-end 2024 comfortably
below 5.0
Business Highlight s
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E.ON Integrated Annual Report 2024
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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.ON’s strategy—sustainability, digitalization, and growth—are the centerpiece of our business model and deeply embedded in the way
we think, work, and impact people’s lives. This overview is guided by the International Integrated Reporting Council’s (“IIRC”) framework.
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E.ON Integrated Annual Report 2024
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How We Make an Impact
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E.ON Integrated Annual Report 2024
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Key Performance Indicators
Financial
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E.ON Integrated Annual Report 2024
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Key Figures of the E.ON Group
Financial
1Adjusted for non-operating effects. ·2Adjustment of the previous year's figures due to the expansion
of investments to include cash inflows and outflows 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 Consolidated Balance Sheets. This is
because economic net debt is calculated in part based on the actual amount of E.ON’s 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 represents
management’s 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
5,562
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
6,463²
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-end)3
41,067
37,691
9
Debt factor3
4.5
4.0
14
Credit rating S&P
BBB+
BBB
+
Credit rating Moody's
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
134
ROCE (%)
8.8
10.7
-174
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
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E.ON Integrated Annual Report 2024
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Key Performance Indicators
Sustainability
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E.ON Integrated Annual Report 2024
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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 proportion 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 resulting in lost time per million hours of work. ·
7Average number of formal training hours per employee per year. · 8System average interruption
duration index ("SAIDI") for power. · 9Refers to shareholder representatives.
Sustainability Figures
2024
2023
Environment
CO2 emissions (millions of metric tons CO2e)
Scope 1
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 plants connected to E.ON's 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 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 executives (%)
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
Proportion of women on the Supervisory Board (%)9
38
38
Proportion of independent Supervisory Board members (%)
100
100
ESG targets included in Management Board compensation
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E.ON Integrated Annual Report 2024
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Key Performance Indicators
Energy Networks
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E.ON Integrated Annual Report 2024
13
Key Performance Indicators
Energy Retail/EIS1
1 Energy Infrastructure Solutions
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E.ON Integrated Annual Report 2024
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Reasons to Invest in E.ON Stock
Energy Networks
Long-term growth in a regulated
environment
Growth opportunities from the green energy
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 cities 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
strategic backbones
Pioneering the digital transformation of the
energy sector and applying strict sustainability
criteria as the core foundation for steering the
company
Financial Strategy
Focus on value creation and shareholder
returns
Clear focus on value creation and solid financial
headroom ensuring an attractive shareholder
return outlook including dividend and earnings
growth
To Our Inve stors
To Our Investors → E.ON on the Capital Market
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E.ON Integrated Annual Report 2024
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To Our Investors
E.ON on the Capital Market
2024: DAX Delivers Good Performance Despite Weak Economy
Germany’s DAX stock index ended 2024 up 19 percent. Many DAX companies benefited from their
broad international scope. Germany’s 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 and German equities during 2024. Compared with the DAX, E.ON stock’s 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-September—a 14 percent increase. This trend subsequently reversed,
however, and the stock closed 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 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 for the 2024 financial year (prior year:
€0.53). Based on E.ON stock’s 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 annually.
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 represents management’s dividend proposal.
2Source: NASDAQ.
3Based on ordinary shares outstanding at year-end.
To Our Investors → E.ON on the Capital Market
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E.ON Integrated Annual Report 2024
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Broad Investor Base
The most recent shareholder identification at year-end 2024 shows that 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 Multiple 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 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.ON’s ADR program offers U.S. investors the opportunity to acquire
E.ON stock and hold it in the form of share certificates that are traded and settled like other U.S. stocks.
Analyst Estimates
E.ON stock is rated by a large number of financial analysts from various investment banks and
brokerage houses. The current recommendations can be viewed at www.eon.com/en/analysts-
estimates.
E.ON Stock Symbols and Identification Numbers
Reuters: Xetra
EONGn.DE
Reuters: Frankfurt Stock Exchange
EONGn.F
Bloomberg: Frankfurt Stock Exchange
EOAN GY
Bloomberg: ADR over-the-counter code
EOANGY US
Security Identification Numbers
Germany
ENAG99
International Securities Identification Number (ISIN)
DE000ENAG999
To Our Investors → E.ON on the Capital Market
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Ongoing Investor 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 shows—worldwide—because maintaining regular communications
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 represents 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 Moody’s and
Fitch remained stable during the year under review, whereas Standard & Poor’s upgraded its rating
from BBB to BBB+. These credit ratings reflect the confidence in E.ON’s 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 as 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), 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 role in many international investors’ decision for
or against a particular investment. In 2021 E.ON became the first company to fully align its Green Bond
Framework, under which it issues debt instruments whose issuance proceeds fund sustainable
investment projects, not only with the ICMA Green Bond Principles but also with the EU Taxonomy.
The EU Taxonomy Regulation defines which economic activities are classified as environmentally
sustainable, thereby setting a Europe-wide standard for sustainable investment. E.ON generally
intends to cover more than 50 percent of its annual funding requirements with 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.ON’s financing.
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E.ON Integrated Annual Report 2024
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The E.ON
Management
Board
The Management Board manages the Company’s
business, with all its members bearing joint
responsibility. It determines E.ON’s corporate
objectives, fundamental strategic course,
corporate policy, and organizational setup.
From left to right:
Victoria Ossadnik
Chief Operating Officer Digital
Thomas König
Chief Operating Officer Networks
Leonhard Birnbaum
Chief Executive Officer
Nadia Jakobi
Chief Financial Officer
Marc Spieker
Chief Operating Officer Commercial
To Our Investors → CEO Letter
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CEO Letter
Dear Shareholders and Friends of E.ON,
A playmaker assumes leadership and responsibility in difficult times. 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 billion—which is at the upper end of our forecast
range—amid a difficult policy and regulatory environment.
Since 2021 we’ve continually expanded our investments—starting from €22 billion—and now plan to
invest €43 billion for the period through 2028. Our brand positioning last year reemphasized what this
is all about. It‘s about “making new energy work.“ It‘s about building energy infrastructure that supplies
sustainable energy around the clock as efficiently as possible. That’s 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 plans and massively
propelled the green transformation of Europe’s 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 investments illustrate this
business’s 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 for our customers in
the future as well.
We’re taking on the debate about the energy transition that erupted in many of our markets last year.
There’s no alternative to the energy transition. Reversing course halfway through would make neither
environmental nor economic sense. Instead, the focus has shifted 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 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 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 turmoil. Nevertheless, business as usual isn’t 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 few days before our annual report’s 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 CEO
To Our Investors → CEO Letter
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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 it 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.
Germany’s Federal Network Agency now has the opportunity to address this 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 Birnbaum
To Our Investors → Report of the Supervisory Board
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Report of the
Supervisory
Board
Dear Shareholders,
Amid geopolitical challenges and the continuing advance of climate change, the transformation of
Europe’s 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 sustainable 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 the 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 society 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 in Europe. The challenges are
significant—but so are the opportunities.
In the 2024 financial year the Supervisory Board carefully performed all its duties and obligations under
law, the Company’s Articles of Association, and its own rules and procedures. It advised the
Management Board in detail about the Company’s management and continually monitored the
Management Board’s activities, assuring itself that the Company’s 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 regular 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 Board with timely and comprehensive
information about significant business transactions in both written and oral form. At the meetings of
the full Supervisory Board and its committees, the Supervisory Board had sufficient opportunity to
actively discuss the Management Board’s reports, motions, and proposed 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 Company’s Articles of Association, or the
Supervisory Board’s rules and procedures. Furthermore, the Supervisory Board also met on 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 instances.
Erich Clementi
Chairman of the
Supervisory Board
To Our Investors → Report of the Supervisory Board
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E.ON Integrated Annual Report 2024
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Overview of the Attendance of Supervisory Board Members at Meetings of the
Supervisory Board and Its Committees in the 2024 financial year
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
Fröhlich, Klaus
4/4
-
-
4/4
-
Grillo, Ulrich
4/4
5/5
-
-
2/2
Groth, Anke
4/4
-
4/4
-
-
Petit, Nadège
4/4
-
-
4/4
-
Schmitz, Andreas
4/4
-
4/4
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
-
Pinczésné Márton,
Szilvia
4/4
-
-
-
-
Pöhls, René
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-tuning E.ON’s 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 on the expansion of our Energy Retail business division’s sustainable,
digital customer solutions and energy sales. E.ON aims to play an even more active role in shaping
Europe’s energy transition and to propel the decarbonization of cities and communities as well as
business customers’ operations. E.ON made Energy Infrastructure Solutions (“EIS”) a separate business
division as of January 1, 2024.
In the 2024 financial year, the Supervisory Board discussed E.ON’s strategic direction with the
Management Board, in particular in view of the altered geopolitical and regulatory situations. The
Management Board and 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.
Important Topics of the Supervisory Board’s Discussions
The dynamic policy and energy-market developments in Germany and Europe formed an important
topic of the Supervisory Board’s deliberations. The board examined the German government’s power
plant strategy and the consequences of the Federal Constitutional Court’s 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 and their implications for the
E.ON Group.
Furthermore, the Supervisory Board dealt with E.ON’s 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 thoroughly discussed the E.ON Group’s
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 Company’s cybersecurity and business continuity
management. A special focus of every meeting was health and safety as well 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 numbers 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.ON’s customer solutions
business—especially the end-customer business in Europe—in 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 Financial Officer of E.ON SE, took over the role of Chief
Operating Officer—Commercial 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 also 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 Group's central commodity procurement unit, E.ON
Energy Markets GmbH, is responsible for Finance, 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.
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E.ON Integrated Annual Report 2024
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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 Code‚ dated April 28, 2022, published
by the Federal Ministry of Justice in the official section of the Federal Gazette (Bundesanzeiger) on
June 27, 2022, since the last declaration in December 2023.
The Management Board and Supervisory Board also declared that E.ON has been in full compliance
with the recommendations 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 versions are published on the Internet at www.eon.com.
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 SE’s Articles of Association, the Management Board is authorized to provide
that Annual Shareholders Meetings held on or before June 30, 2025, may be held without the physical
presence of shareholders or their proxies at the venue of the Annual Shareholders Meeting. The
decision on the format of the Annual Shareholders Meeting is made annually. Deliberations focus in
particular on safeguarding 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 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.ON’s business were conducted for Supervisory
Board members in the past financial year. 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 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 Board’s composition, including a competency profile and a diversity
concept, with regard to Recommendation C.1 of the German Corporate Governance Code and Section
289f, Paragraph 2, Item 6 of the German Commercial Code and the status of the implementation of the
competency profile in the form of a qualifications matrix are available in the Corporate Governance
Declaration.
The effectiveness of the Supervisory Board’s work and that of its committees 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 unanimously
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
committees—with the exception of the Nomination Committee—have 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 committee’s meetings. At its meetings, the
committee, in particular, addressed the dynamic policy and regulatory changes in conjunction with the
current transformation of Europe’s energy system. Additionally, the Executive Committee dealt with
the Management Board’s compensation, including the achievement of Management Board targets for
2024 and the setting of the targets 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 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 Group’s 2023 Consolidated 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 financial reports and assigned
the tasks for the independent auditor’s auditing services, established the audit priorities, determined
the independent auditor’s compensation and reviewed the independent auditor’s qualifications as well
as the quality of the independent audit, and verified the auditor’s qualifications 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 Group’s combined Non-financial Statement as 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 auditor’s audit services in the event of Germany’s
anticipated 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 Company’s Articles of Association, or the
Supervisory Board’s rules and procedures, in particular Internal Audit’s activities and reports,
accounting issues, risk management, transactions with related parties, and developments in the area of
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E.ON Integrated Annual Report 2024
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compliance. Furthermore, the committee thoroughly discussed the Combined Group Management
Report and the proposal for profit appropriation and prepared the relevant recommendations for the
Supervisory Board and reported them to the Supervisory Board. On the basis of the quarterly risk
reports, the committee noted that no risks were identified that might jeopardize the existence of the
Group or individual segments. Furthermore, the committee addressed in detail the implications and the
management of the energy crisis, occupational safety, and the Company’s cyber, legal, and data-
protection risks as well as business continuity management. In preparation for Germany’s 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 auditor throughout the financial year.
The Innovation and Sustainability Committee met four times. All members attended all of the
committee’s meetings. The matters addressed by the committee included E.ON’s progress toward
achieving its sustainability targets and its position in leading sustainability rankings. 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 Committee’s considerations encompassed the E.ON eMobility Solutions 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 Board’s work (efficiency audit). All members attended the committee’s
meetings.
Committee chairpersons reported the agenda and results of their respective committee’s meetings to
the full Supervisory Board on a regular basis. The Corporate Governance Declaration provides
information about the committees’ composition and responsibilities.
Examination 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, Wirtschaftsprüfungsgesellschaft, audited and submitted an unqualified auditor’s and/or
audit opinion on the Consolidated Financial Statements of E.ON SE prepared in accordance with IFRS,
the Combined Group Management Report, and the Compensation Report pursuant to Section 162 of
the German Stock Corporation Act (“AktG”) for the year ended December 31, 2024.
KPMG AG Wirtschaftsprüfungsgesellschaft was elected as Group auditor by the Annual Shareholders
Meeting on May 16, 2024, and has been E.ON SE’s independent auditor without interruption since the
2021 financial year. The auditor responsible at KPMG AG Wirtschaftsprüfungsgesellschaft is
Alexander Bock, who is performing this function for the first time. The IFRS Consolidated Financial
Statements exempt E.ON SE from the requirement to publish Consolidated Financial Statements in
accordance with German law.
The Supervisory Board reviewed and, at its annual results meeting on February 25, 2025, thoroughly
discussed—in the presence of the independent auditor and with knowledge of, and reference to, the
Independent Auditor’s Report and the results of the preliminary review by the Audit and Risk
Committee—E.ON SE’s Financial Statements prepared in accordance with the German Commercial
Code, Consolidated Financial Statements, and Combined Group Management Report as well as the
Management Board’s 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 Auditor’s Report.
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E.ON Integrated Annual Report 2024
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The Supervisory Board also examined the sustainability reporting consisting of the combined Non-
Financial Statement and additional sustainability information which are integrated into the Combined
Group Management Report. KPMG also audited the Non-Financial Statement and selected additional
sustainability information and issued an unqualified opinion. The disclosures were subjected to a limited
assurance engagement by KPMG; selected disclosures were audited with reasonable assurance.
Following the final result of its examination, the Supervisory Board raised no objections to the
integrated sustainability reporting, including the Non-Financial Statement.
On February 25, 2025, the Supervisory Board approved the Financial Statements of E.ON SE prepared
by the Management Board and the Consolidated Financial Statements. The Financial Statements are
thus adopted. The Supervisory Board agrees with the Combined Group Management Report and, in
particular, with its statements concerning the Company’s future development.
The Supervisory Board examined the Management Board’s proposal for profit appropriation, which
includes a cash dividend of €0.55 per ordinary share, also taking into consideration the Company’s
liquidity and its finance and investment plans. After examining and weighing all arguments, the
Supervisory Board agrees with the Management Board’s proposal for profit appropriation.
Personnel 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 Supervisory Board
Best wishes,
Erich Clementi
Chairman
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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 Environmental 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 Solutions
84
Energy Retail
84
Earnings Situation
86
Financial Situation
92
Asset Situation
95
E.ON SE’s 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 the 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 Mana gement Report
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E.ON Integrated Annual Report 2024
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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 German 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.ON’s 2024 Consolidated 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 Group’s
structure and business divisions.
The reporting 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 Regarding Takeovers. The Corporate Governance
Declaration is published on our website eon.com 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 eon.com. The previous Integrated Annual Report
was published in March 2024. You can find it and additional reports in the
Investor Relations Archive at eon.com.
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 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 Statements and is
therefore excluded from the auditor’s 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”) 3000 (Revised) issued by the International Auditing and Assurance
Standards Board (“IAASB”). The audit assurance applied to the different
contents is clarified in the report by means of various symbols.
Symbols next to headings [H4] apply until the next heading of the same
level of hierarchy. Sections within the same chapter that were audited with
a different assurance may be marked separately. This is done in longer
sections by means of symbols next to the subheadings [H5] which apply
until the next heading of the same level of hierarchy. In addition, individual
sections or KPIs that are subject to a different audit assurance may be
marked separately.
The corresponding contents are marked as follows:
[+] Not part of the statutory audit 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 Consolidated 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 › ‹.
The precise scope of the audit is described in the Other Information section
in the Independent Auditor’s 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) 2022/2464 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 HGB 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 SE’s Non-Financial
Statement was prepared without using a framework. In addition, we are
complying with the EU Taxonomy Regulation’s 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 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 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 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 Protection chapter provides detailed
information on the emission factors used. The Sustainability Statement
also uses forward-looking information; actual results may differ from the
statements. ◄
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E.ON Integrated Annual Report 2024
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Corporate 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 Group’s core business is divided into three
business divisions: Energy Networks, Energy Infrastructure Solutions, 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.ON’s power and gas distribution
networks and related activities. E.ON operates energy networks 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, which is accounted for using the equity method).
This business division’s 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 and 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) with 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 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 smart 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 eMobility. E.ON’s
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 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, and Other
segments. The latter segment encompasses regional sales activities in
Sweden, Italy, the Czech Republic, Hungary, Croatia, Romania, and Poland.
One of E.ON’s objectives is to enhance its customers’ satisfaction and work
with them to help actively shape Europe’s energy transition. In addition, the
E.ON Group’s central commodity procurement entity, E.ON Energy
Markets GmbH is reported in the Energy Retail—Other segment.
Corporate Functions/Other
Corporate Functions’ main task is to lead the E.ON Group. This involves
charting E.ON’s strategic course as well as managing and funding its
existing business portfolio. Corporate Functions’ tasks include optimizing
E.ON’s overall business across countries and markets from a financial,
strategic, and risk perspective, and conducting stakeholder management.
The E.ON Group’s non-strategic activities, such as the dismantling of
nuclear power stations (which is managed by the PreussenElektra unit) and
the generation business in Turkey are reported here as well.
Strategy4
The situation on Europe’s 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 countries
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 transition’s significant decarbonization
potential makes 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
resilient—including amid political developments. Decisions like the Easter
package and the aforementioned examples demonstrate that energy
security and digital, resilient energy infrastructure are becoming
increasingly important.
E.ON’s consistent implementation of its strategy—whose three key
elements are sustainability, digitalization, and growth—aims to propel the
energy 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.ON’s future growth. In
2022 the Science Based Targets initiative (“SBTi”) confirmed that E.ON’s
near-term climate targets for 2030 are compatible with the Paris climate
agreement’s 1.5 degree target. This means that E.ON’s 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-
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 to 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 networked solutions. For example,
E.ON’s 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 divisions—for
which investments are indispensable—and plans a total of €43 billion for
the period 2024–2028. 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 digitalization 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 facilities 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 battery storage solutions and in projects that
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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, sustainable, 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.ON’s
success and is founded on technological standards and a clear cloud
strategy. 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, and
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.
Innovation
Collaborating in Global Partnership Networks to Promote
Innovations in E.ON’s Operating Business
E.ON’s strategy—whose key elements are sustainability, digitalization, and
growth—determines the agenda for its innovation activities as well. The
focus topics in 2024 were shaping the “future of energy” 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.ON’s innovation approach has three main components: incubation (lead
business unit: E.ON Group Innovation), startup financing (Future Energy
Ventures), and scale-up (E.ON One).
E.ON ensures its innovation strategy’s implementation through the
collaboration of these three innovation units and their close cooperation
with E.ON’s operating units.
• E.ON Group Innovation GmbH is our intragroup incubator 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.ON’s existing operating business are spun off by E.ON
Group Innovation as independent ventures. In addition, E.ON’s
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 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
tomorrow’s energy world. E.ON is a strategic partner of Future Energy
Ventures and thus has direct access to promising startups worldwide.
• E.ON One GmbH is a sales platform for market-ready digital solutions. It
acquires startups and integrates their technology into E.ON’s system
architecture to ensure the operational reliability of the digital systems on
offer. E.ON One markets these solutions to distribution network
operators 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 innovation
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.
Evailable’s artificial intelligence (“AI”) software can learn charging stations’
usage patterns and quickly identify deviations from normal operation. Its
predictive maintenance enables charging station operators to detect a
potential fault several days before it leads to a charging station failure.
Evailable’s offerings help charging station operators and manufacturers
improve their charging points’ availability, reduce operating costs, and
secure revenues.
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 of
significant importance for E.ON’s 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 goal of further expanding E.ON’s 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 Electrons, 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 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 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 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 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 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.ON’s central Innovation division’s 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 for E.ON to be the sustainable platform for Europe’s energy
transition and, in line with our strategy, to sustainably enhance our
Company’s 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
businesses. 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.ON’s Management System
Adjusted EBITDA, investments, and earnings per share based on adjusted
net income (“EPS“) are the most significant indicators 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 our
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E.ON Integrated Annual Report 2024
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customers, employees, shareholders, and bondholders‚ always in line with
our environmental and social responsibility as a leading international
energy company. Furthermore, including key non-financial 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 to support the implementation of our
strategy and thus E.ON’s 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 indicators.
Changes were made to the E.ON Group’s 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 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 the 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 derivative 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, 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 Group’s Consolidated Statements of Cash
Flows. Investments are the engine for the future growth and digitalization
of E.ON’s business as well as 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 earnings, 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.
Significant 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 retain 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 Company’s
attractiveness for investors is reflected in total shareholder return (“TSR”)
(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 Protection
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. 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 sustainable growth in line with the fulfillment of
our financial ambitions. For this reason, cash-conversion rate, which is an
indicator of E.ON’s 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 indicators 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 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.
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E.ON Integrated Annual Report 2024
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Sustainability Statement
General Information
E.ON’s Approach to Sustainability [+]
Sustainability Governance and Management
We have clearly organized responsibility for sustainability. This ensures
that we can work together efficiently and improve continually. 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, E.ON’s 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 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 sustainability 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 help 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 met three times in 2024. The issues it discussed
included E.ON’s 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 aspects 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 Group’s general strategic course even more closely with sustainability
and climate protection. Group Accounting’s ESG Reporting department
organizes and coordinates Group-wide sustainability reporting. E.ON has
an ESG reporting manual. The manual’s detailed descriptions and
requirements guide the units in collecting and reporting ESG key
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 the 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 Group’s 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 we identified in the materiality analysis.
The “Double Materiality Analysis” and “Sustainability: an Integral
Component of E.ON’s 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 results 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 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, Sustainability and Innovation, and Group
Accounting departments.
In 2024 the Innovation and Sustainability Committee dealt not only with
E.ON’s sustainability targets and performance and ratings and its position
in leading sustainability rankings but also with its anticipated initial
reporting pursuant to the CSRD. It focused in particular on developments
relating to regulatory ESG requirements at the European and global level
and with E.ON’s implementation of them. It addressed the climate
transition, climate targets, and biodiversity as well.
The Audit and Risk Committee was likewise informed on a quarterly basis
about material sustainability topics, particularly in the context of
sustainability reporting. In 2023, for example, we presented the CSRD’s
different materiality definitions compared with the Non-Financial
Statement and their impact on E.ON’s reportable sustainability topics and
sustainability-related material impacts, risks, and opportunities. Our final
analysis and its implementation in 2024 drew on the committee’s
feedback. At other meetings, the committee was regularly informed on the
latest findings regarding the CSRD’s transposition into German law, its
impact on Group companies, and the status of implementing its
requirements in the E.ON Group. The Supervisory Board’s 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 Group’s combined Non-financial Statement as 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 auditor’s audit services in the
event of Germany’s 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. Pursuant to E.ON
SE’s 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 Board’s shareholder
representatives is 38 percent; the 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 performance, 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 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 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 members 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 selection process also takes into account sustainability
aspects that enable candidates to make strategic and operational business
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E.ON Integrated Annual Report 2024
32
decisions. The appointment period of a member of the Management Board
ends, at the latest, at the end of the month on which the Management
Board member reaches the general retirement age.
The Supervisory Board’s composition reflects the requirement that
members have specific knowledge is required regarding the energy sector,
the sales and customer business, and regulated industries. Independence
and diversity play a role as well. Alongside other extensive experience that
must be represented on E.ON‘s Supervisory Board, the following play a
special role in the context of the Group‘s material sustainability issues:
• specific knowledge in the areas of new technologies, 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 of 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
• experience 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 sustainability 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
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 the
principles and structure of the compensation of the E.ON SE Management
Board and Supervisory Board.
The Management Board’s compensation system takes full account of the
aforementioned aspects and represents an important governance element
for the implementation of corporate strategy. Management Board
compensation is linked to E.ON’s performance to a high degree and has a
clear pay-for-performance orientation. The compensation system provides
an incentive for successful and sustainable corporate governance—which
also takes into account the ESG aspects relevant to E.ON—and links
Management Board members’ compensation to the Company’s 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 compensation, 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 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
resolution, the compensation system is submitted to the Annual
Shareholders Meeting for approval. The Supervisory Board reviews the
compensation system’s structure, the appropriateness of total
compensation, and the individual compensation components on a regular
basis in accordance with the AktG’s requirements and the German
Corporate Governance Code’s 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 Meeting, 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 Board’s
performance for the performance criteria 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 annual
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-
related parameters geared toward the Company’s 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 implementation of the corporate strategy and pursues the same
objectives.
E.ON‘s sustainability strategy is incorporated into Management Board's
compensation system by means of Net Promoter Score and the agreement
of collective and individual targets in individual performance factors
included in short-term variable 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 amounted 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
Chairman 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 Supervisory Board determines the specific target
values for each target and the respective target achievement curves for the
tranche’s 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 trance of the E.ON Performance
Plan (2024–2027), 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 Group’s target for
2030
• increase the proportion of female executives 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 calculated 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 analysis 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
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E.ON Integrated Annual Report 2024
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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 perspective 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 Statement 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 topics. The process
has the following steps:
Understand E.ON’s 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 chain—that is, upstream and
downstream activities—as 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 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 subsidiaries
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
departments 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, Risks, 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 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 list—which is a list
of potential sustainability issues and/or impacts, risks, and opportunities
(“IROs”)—and checked it 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 specialist 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.ON’s segments they occur or
could 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 short-, 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 availability 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 climate 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
for 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 mechanism (which implements ESRS 1’s 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 on 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 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, cooperation 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 the scale’s
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
explanations 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.
Decentralized 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 potential 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 E.ON’s risk and chances reporting system). The
decentral units were instructed to use, in particular, the ERM’s 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 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 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 decentral units’ feedback.
In assessing IROs, we also considered potential effects, risks, and
opportunities relating to the dismantling of PreussenElektra’s 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
level, 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, all work is carefully planned, supervised by radiation
protection experts, and inspected by the regulatory agency’s independent
experts or by PreussenElektra itself. After fuel elements have been
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E.ON Integrated Annual Report 2024
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removed and unloaded, only 1 percent radioactivity remains for a plant’s
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 dismantling 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 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 because 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 assessment’s findings
centrally and 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 relevant 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 Board’s
Audit and Risk Committee prior to the Management Board’s 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 page :
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
occupational safety, political dialogue, sustainable investment, and
cybersecurity were deemed material for the first time.
E.ON subjects the materiality analysis’s findings to an annual review in
order to check the topicality and relevance of the impacts, risks, and
opportunities deemed material. As we had already conducted the above-
described materiality analysis in 2023, we reviewed its findings again in
2024 and had their validity confirmed by the Sustainability Council.
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E.ON Integrated Annual Report 2024
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Section
Material Sustainability Aspects (IROs)
Disclosure Requirements Chapter
General
Information
ESRS 2
→ E.ON’s Approach to Sustainability1
→ Environmental Management2, E.ON’s Approach, Specific
actions
Climate Protection
and Environmental
Management
Climate Protection, Digitization, and Innovation
ESRS E1-1 – E1-9
→ Climate Protection1, 4
→ Sustainable Products and Services4
• E.ON’s investments to expand and digitalize its networks and to connect
renewables facilities on an ongoing basis enable Europe’s 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 from network
losses (positive actual impact).
Short to long
term
• Own operations
• Network losses lead to CO2 emissions. CO2 emissions likewise occur during
the generation of power that E.ON procures and sells to customers, as well as
during the combustion of gas that E.ON sells to customers (negative actual
impact).
Short to long
term
• Own operations
• Upstream and downstream
value chain
• Innovations lead to improved resource efficiency: E.ON focuses on
innovations in order to develop new decarbonization solutions. Innovations
also reduce the CO2 emissions caused by the production and use of goods
and services purchased from E.ON (positive potential impact).
Short to medium
term
• Own operations
Information in accordance with
Article 8 of Regulation (EU)
2020/852 (Taxonomy
Regulation)
→ EU Taxonomy1, 4
→ Compliance und Anticorruption3, 8, 9, E.ON’s Approach
→ Human Rights and Supply Chain Management3, 7, 9
Employees and
Society
Occupational Safety
• Many jobs in the energy sector are associated with occupational safety risks.
E.ON’s employees and contractors sometimes carry out high-risk activities.
There is a risk of electric shocks, falls, and other occupational risks that can
lead to accidents at work and health problems. Health and safety impacts can
also occur in less risky areas (negative potential impact).
Short to medium
term
• Own operations
• Downstream value chain
ESRS S1-1 – S1-5, S-14
→ Occupational Health and Safety1, 5, 9
→ Human Rights and Supply Chain Management3, 7, 9
ESRS S1-6
→ Working Conditions and Employee Development1, 5, 9,
Guidelines and Policies, Progress and Measures
→ Diversity, Equity & Inclusion5, 9, Progress and Measures
1Chapter contains references to other sections of the Sustainability Statement and the Management Report. Further details can be found in the respective chapter and in the Index to the Sustainability Statement.
2Chapter contains relevant disclosure requirements from assigned ESRS but is assigned to the Climate Protection and Environment section of the Sustainability Statement.
3Chapter contains relevant disclosure requirements from assigned ESRS but is assigned to the Governance section of the Sustainability Statement.
4The topic is allocated to environmental matters in accordance with Sections 315b, 315c in conjunction with Sections 289b to 289e of the German Commercial Code (German abbreviation: “HGB”).
5The topic is allocated to employee matters in accordance with Sections 315b, 315c in conjunction with Sections 289b to 289e of the HGB.
6The topic is allocated to social matters in accordance with Sections 315b, 315c in conjunction with Sections 289b to 289e of the HGB.
7The topic is allocated to human rights in accordance with Sections 315b, 315c in conjunction with Sections 289b to 289e of the HGB.
8In accordance with sections 315b, 315c in conjunction with sections 289b to 289e of the HGB, the topic is assigned to the issue of combating bribery and corruption.
9The topic was not identified as material within the meaning of Sections 289b to 289e of the HGB. In addition to the disclosures required by ESRS, further disclosures in accordance with ESRS 1.114 have been included in this section. They are disclosed in accordance with Sections
315b and c in conjunction with Sections 289b to 289e of the HGB.
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E.ON Integrated Annual Report 2024
36
Section
Material Sustainability Aspects (IROs)
Disclosure Requirements Chapter
Employees and
Society
Security of Supply
• E.ON is an energy company and distribution system operator. It therefore
helps provide customers with a secure supply (positive actual impact).
• Increasing renewables capacity helps reduce carbon emissions. Alongside
connecting renewables to the power network, increasing biogas capacity is
an important component of a sustainable energy supply (positive actual
impact).
Short to medium
term
• Own operations
• Downstream value chain
ESRS S3-1 – S3-5
→ Security of Supply6, 9
Affordable Energy
• Energy companies like E.ON play a central role in reducing climate
protection’s social impact. Investing in modern infrastructure, innovative
technologies, digitalization, and intelligent customer solutions enables E.ON
to increase energy efficiency along the entire value chain (positive actual
impact).
• To ensure fair and stable prices for customers, E.ON focuses on procuring
energy farsightedly at the most favorable and stable procurement costs
possible (positive actual impact).
Short to medium
term
• Own operations
ESRS S4-1 – S4-5
→ Energy Affordability1, 6, 9
→ Customer Satisfaction6, 9
Cybersecurity
• The expansion of digital systems in our critical infrastructure must be
designed so that in-house users, customers, and suppliers can trust them and
negative effects like outages of any kind are avoided (negative potential
impact).
Short to long
term
• Downstream value chain
Entity-specific topic within the
meaning of ESRS 1 para. 11
→ Data Protection, Cybersecurity, and Product Safety1, 6, 9
→ Business Resilience Management6, 9
Governance
Political Dialog
• We seek dialog with policymakers, government agencies, industry networks,
trade associations, and customers in order to realize the goal of a sustainable
energy system that involves people in the energy transition (positive potential
impact).
Short to medium
term
• Own operations
ESRS G1-5
→ Political Dialog8, 9
Sustainable
Finance and
Sustainable
Investment
Sustainable Finance
• The transformation and decarbonization of the energy world require
substantial investments. E.ON has a positive impact on this by issuing green
bonds to finance and/or refinance projects for energy networks, renewables,
energy efficiency, and clean mobility (positive actual impact).
Short to medium
term
• Own operations
Entity-specific topic within the
meaning of ESRS 1 para. 11
→ Sustainable Finance1, 9
→ ESG Ratings of E.ON9
→ ESG Asset Management and Pension Assets9
1Chapter contains references to other sections of the Sustainability Statement and the Management Report. Further details can be found in the respective chapter and in the Index to the Sustainability Statement.
2Chapter contains relevant disclosure requirements from assigned ESRS but is assigned to the Climate Protection and Environment section of the Sustainability Statement.
3Chapter contains relevant disclosure requirements from assigned ESRS but is assigned to the Governance section of the Sustainability Statement.
4The topic is allocated to environmental matters in accordance with Sections 315b, 315c in conjunction with Sections 289b to 289e of the German Commercial Code (German abbreviation: “HGB”).
5The topic is allocated to employee matters in accordance with Sections 315b, 315c in conjunction with Sections 289b to 289e of the HGB.
6The topic is allocated to social matters in accordance with Sections 315b, 315c in conjunction with Sections 289b to 289e of the HGB.
7The topic is allocated to human rights in accordance with Sections 315b, 315c in conjunction with Sections 289b to 289e of the HGB.
8In accordance with sections 315b, 315c in conjunction with Sections 289b to 289e of the HGB, the topic is assigned to the issue of combating bribery and corruption.
9The topic was not identified as material within the meaning of Sections 289b to 289e of the HGB. In addition to the disclosures required by ESRS, further disclosures in accordance with ESRS 1.114 have been included in this section. They are disclosed in accordance with Sections
315b and c in conjunction with Sections 289b to 289e of the HGB.
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E.ON Integrated Annual Report 2024
37
Sustainability: an Integral Component of E.ON’s Business Model
and Strategy
E.ON’s purpose and attitude—“Making New Energy Work”—strive to help
the energy transition achieve a breakthrough. The energy world is
becoming increasingly decentralized, digital, and decarbonized. And this
means: more sustainable. Our Energy Networks, Energy Infrastructure
Services, and Energy Retail business divisions are helping make this
development possible. The ESG impacts, risks, and opportunities identified
in our materiality analysis are also in line with our purpose and our
associated commitment to people and the environment. We describe
below how our material impacts, risks, and opportunities relate to our
business model and strategy and explain the extent to which they influence
each other.
The Energy Industry’s Supply Triad: Security of Supply,
Sustainability, Affordability
E.ON acts systematically to promote the energy world’s sustainable
development. We focus in particular on climate protection, security of
supply, and affordable energy. The ongoing increase in renewables’ share
in electricity networks, the digitalization and smartification of our
networks, and the marketing of efficient and climate-friendly customer
solutions that optimize energy consumption can make a positive
contribution to climate protection. The climate protection topic cluster
addresses standard climate protection aspects as well as innovation and
digitalization.
In principle, E.ON wants to minimize its business activities’ negative impact
as much as possible. One example is the continual reduction of our Energy
Network business division’s network losses. There are also factors in our
upstream value chain, such as climate-intensive upstream products, that
have an adverse impact on E.ON’s carbon footprint or rising carbon prices,
which can propel electrification in various sectors. This can positively
impact our strategy’s defined growth areas, which are described in the
Strategy chapter.
E.ON’s network business promotes a secure energy supply in its
downstream value chain, for example for industrial enterprises and end-
customers in its markets. Unplanned outages can harm E.ON’s image as a
trustworthy energy-supply partner. In addition, our network
infrastructure’s complexity increases in line with digitalization.
Cybersecurity is a key issue for E.ON to reduce digitalization’s possible
adverse impacts on society. This is, alongside the supply triad, a key
component in supporting our Group strategy. In addition to a high-quality,
modern network infrastructure, the energy transition and social challenges
also influence energy affordability. By proactively procuring energy, E.ON
can positively impact its customer’ energy costs, particularly in its Energy
Retail business division.
Our investments in our network business form the basis for strategically
seizing the opportunities that arise for E.ON. The transformation and
decarbonization of the energy world will require significant investments.
This is why E.ON has decided not only to focus on a sustainable business
model, but also to conduct green and/or sustainable financing. This
supports the energy transition and E.ON’s business model, in particular by
means of sustainable projects in energy networks, renewables, energy
efficiency, and clean mobility.
We also use our ability to influence policies for and on these issues—in the
interest of a sustainable, democratic energy system that gets people
involved in the energy transition. We seek dialog with policymakers,
government agencies, trade associations, and our customers with the aim
of making a climate-friendly future a reality.
E.ON relies on its employees’ support to bring about the energy transition
and to work together for a sustainable energy world. The health and safety
of our employees and our contractors is essential for us to achieve our
ambitious goals, as is their innovativeness and professional expertise, for
which we want to offer an attractive, modern work environment.
The Climate Protection, Occupational Health and Safety, Security of
Supply, and Energy Affordability chapters in particular contain more
detailed information on our main impacts, risks, and opportunities as well
as a description of where they are located in our value chain. The Financial
Situation chapter and the Forecast Report describe the investments we
have made and plan to make in the expansion and digital transformation of
our energy networks and in sustainable customer solutions.
We critically analyzed at the Group level the extent to which E.ON’s
material sustainability aspects have a potential impact on its business
model’s resilience and its corporate strategy. Material impacts, risks, and
opportunities are already a comprehensive and integral part of E.ON’s
strategy. This ensures that we can adapt ourselves and our strategy to
changes that may arise from our material sustainability issues in the short,
medium, and long term in order to continue to be successful in the long
term. The Climate Protection chapter in particular contains a detailed
description of our business model’s climate resilience.
The Business Model and Strategy chapters in the Corporate Profile section
and the EU Taxonomy chapter contain more detailed information on E.ON's
strategy, business model and value chain (ESRS 2 SBM-1). The Working
Conditions and Employee Development and Human Rights and Supplier
Management chapters provide an overview of our employees by region.
The respective chapters on E.ON’s material sustainability topics offer more
information on how sustainability is integrated into our strategy (ESRS 2
SBM-3).
The Index to the Sustainability Statement in the Appendix to the
Sustainability Statement contains a comprehensive overview of all ESRS
disclosure requirements relevant to E.ON. The appendix also provides a list
of all data points resulting from EU legislation listed in ESRS 2 Appendix B.
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E.ON Integrated Annual Report 2024
38
Stakeholder Engagement
Stakeholder engagement is a core corporate governance process at E.ON.
We want to listen to, understand, and consider our stakeholders’ views on
an ongoing basis.
Depending on the stakeholder and topic, we organize this dialog differently
and select a format suitable to all sides. The dialog formats this range from
information campaigns and discussion forums with business associations
and non-governmental organizations to personal discussions and public
lobbying. The information is shared in-house with appropriate functions.
This ensures that those responsible—from the administrative level to the
Supervisory Board—are informed about our stakeholders’ interests.
The purpose of this engagement is to be transparent about our business
activities’ potential short- and long-term impact. This is an important
objective of our daily work at the local, national, and European level and
ranges from project work to consideration in strategy development. Our
materiality analysis therefore considered stakeholder interests. The section
above that describes our materiality analysis contains more information.
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E.ON Integrated Annual Report 2024
39
Our strategy development is also founded on a trusting relationship with all
our stakeholders. We regularly and continually factor stakeholder
perspectives into the selection of strategic priorities and their
development. We focus on topics that reflect market developments as well
as the energy industry’s supply triad—security of supply, sustainability, and
energy affordability—in order to optimally integrate stakeholders’ needs
into the development of our corporate strategy. In 2024, for example, we
conducted projects on affordability, flexibility, and the heating transition,
which have direct implications for the material topics of affordable energy
and security of supply. The social aspects identified as material and that
relate to our employees, society in general, and our customers play a
special role in stakeholder engagement:
Security of Supply: E.ON’s regional network companies are responsible for
the secure and reliable operation of its distribution network. The central
network control center monitors and controls network operations to
ensure a stable energy supply. Transparency and decisions based on
responsibility and dialog for the common good are of particular importance.
The Security of Supply chapter contains more information.
Energy Affordability: Alongside security of supply, affordability is a key
topic of our strategic development. Transparent and regular s with our end
customers is an important component of this. The Energy Affordability
chapter provides more information.
Occupational Health and Safety: HR strategic development considers our
employees’ interests and perspectives. Occupational safety is a key issue.
The Occupational Health and Safety chapter contains more information.
Generally, we set policies for regional business development based on
stakeholders’ needs. Our business units and regional companies implement
these strategic policies so that local stakeholder interests, such as
municipal management, are addressed as well.
E.ON is actively involved in the global investor initiative CDP (Carbon
Disclosure Project), works with the United Nations Environment
Programme (“UNEP”), and supports the UN Decade on Ecosystem
Restoration. Furthermore, since 2021 E.ON has been part of the LEAF
Coalition (Lowering Emissions by Accelerating Forest Finance), which is
committed to biodiversity and the protection of tropical forests. More
information on the CDP and the LEAF Coalition can be found in the Climate
Protection chapter. E.ON is also a member of SolarPower Europe, a
European association of energy suppliers and solar companies whose aims
include creating more transparency for solar-power supply chains and
ensuring the protection of human rights.
Fulfilling Our Due Diligence Obligation
It is important to have procedures in place for conducting due diligence in
order to determine whether E.ON’s plans and measures can mitigate or
prevent its business activities’ impact on the environment and society or
the impact of parts of its upstream and downstream value chain. E.ON’s
management of sustainability aspects therefore considers various
procedures. We review on a regular whether the measures we have
developed are still fit for purpose and, if necessary, adjust them.
The respective sections of E.ON’s Approach to Sustainability describes in
detail the processes we use to conduct due diligence for that particular
topic. We provide an overview of this in the Appendix to the Sustainability
Statement.
Processes for Preparing the Sustainability Statement
The About This Report chapter provides information on the building blocks
for preparing the Sustainability Statement (ESRS 2 BP-1) and information
on specific circumstances (ESRS 2 BP-2). The Sustainability Statement
does not contain classified, sensitive information within the meaning of
ESRS 1 7.7.
The Internal Control System chapter describes our understanding of risk
management and internal controls in the context of sustainability
reporting.
In the ESRS’s first clause, the European Commission establishes criteria
that must be considered when preparing a Sustainability Statement
pursuant to the CSRD. However, the interpretation of the ESRS’s
formulations and terms is subject to uncertainty. The relevant chapters of
this Sustainability Statement present our interpretation of the criteria.
Climate Protection and Environmental Management
Climate Protection [+]
Climate change, which is becoming increasingly tangible, and associated
environmental damage pose a serious threat to people and nature. The use
of fossil energy results in the emission of greenhouse gases (“GHG”).
Renewable and low-carbon energy generation along with efficient energy
use play a key role in reducing emissions and thus limiting global warming.
Ongoing geopolitical challenges to securing Europe’s energy supply are not
making this demanding task any easier. The transition to a low-carbon
economy thus requires more joint efforts by all energy producers and
consumers. But it also offers energy suppliers the prospect of expanding
their business and adapting to this challenge. Many countries,
communities, and companies are already focusing on climate-friendly
energy generation and energy-efficiency measures to achieve their carbon-
reduction targets. E.ON’s strategic focus on customer solutions for the
efficient use of energy and smart energy networks fully aligns its business
model with these global demands.
E.ON’s Approach
Distribution networks like E.ON’s are the backbone of the energy
transition: they integrate renewables, connect producers and consumers,
and manage complex energy flows in line with demand. The solutions
offered by our Energy Infrastructure Solutions and Energy Retail business
divisions help customers of all kinds use energy more efficiently, produce
their own renewable or low-carbon energy, and thus reduce their carbon
footprint. In short, climate protection is an integral part of E.ON’s business
model. Our ambition is for our business activities to help promote a
sustainable energy supply and shape a viable future for the energy world.
For example, we support companies and communities in reducing their
carbon emissions, connecting renewables to the network, and expanding
their eMobility charging infrastructure. How E.ON’s business model helps
slow climate change is also confirmed by the fact that E.ON is eligible for
inclusion in indices and investment funds that meet the requirements of
Article 12 of EU Regulation 2020/1818 with regard to minimum standards
for EU climate transition benchmarks and Paris-aligned EU benchmarks.
E.ON wants to reduce the size of its environmental footprint as well. Since
2004, the Company has disclosed the annual carbon emissions from its
power and heat generation and from other business activities not directly
related to generation. These include upstream and downstream emissions
associated with E.ON’s business activities. In 2024 the E.ON Management
Board again updated the Company’s climate targets, which had last been
set in 2020. We have defined specific actions to reduce our Scope 1, 2, and
3 emissions (see the “Goals and Performance Review” section below). In
addition, E.ON has included the achievement of its climate targets (Scope 1
and 2) in the Management Board’s compensation system by means of the
E.ON Sustainability Index.
Being climate-neutral means emitting almost nothing and offsetting
residual, unavoidable emissions. The “Goals and Performance Review”
section below provides an overview of E.ON’s near-term climate targets
validated by the Science Based Targets initiative (“SBTi”) in line with the
Paris Climate Agreement’s 1.5-degree target. E.ON has defined a climate
transition plan, which is described below under “Specific Actions,” to
achieve this and its other targets.
Guidelines and Policies
In 2022 the Group Sustainability department was incorporated into the
Strategy, Sustainability, and Innovation division in order to integrate
sustainability and climate protection even more closely into the Group’s
overall strategy. This sharpened our focus on environmental and climate
protection as integral to E.ON’s business operations and important
management tasks. The policy statement obligates E.ON to consider
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E.ON Integrated Annual Report 2024
40
environmental and climate protection in all business decisions. E.ON’s
promise to use the best-possible technologies and procedures in its
business processes highlights its ambition to reduce its environmental
impact and enhance its energy efficiency. E.ON took the strategic step of
extending climate protection to include the focus topics of ecosystems and
resources, which are relevant for a holistic mapping of its interactions with
nature (see the Environmental Management chapter). As part of this, E.ON
intends to amend its existing HSE guidelines to create a functional policy
for its central Sustainability department. This policy will define the roles,
responsibilities, management approaches, tools, and minimum
requirements for the entire organization. It will integrate key impacts, risks,
and opportunities in conjunction with measures to mitigate climate change.
Carbon management mechanisms can, for example, be combined with the
promotion of renewables use. We expect to complete the policy for the
next reporting cycle.
Organization and Responsibilities
The principles of corporate governance guide E.ON’s responsible and
value-oriented management. The clear organization of sustainability and
climate activities promotes efficient collaboration of everyone involved and
continual performance improvement. Information about E.ON’s progress
toward its climate targets is first presented to the CSO, who is also Chief
Executive Officer, and the Sustainability Council for the latter’s approval.
The CSO, who chairs the council, reports to the E.ON Management Board
about progress in carbon management on a regular basis.
The Group’s central Sustainability department takes the lead in developing
and monitoring E.ON’s Group-wide climate targets. It is also responsible
for the climate transition plan and the carbon management plan (see the
“Goals and Performance Review” section below). The units are supported in
their decarbonization efforts by their regional sustainability team. The
central Sustainability department is involved as well. It tracks the
implementation of climate-protection measures centrally, helps design
energy-efficiency measures, and shares ideas and best practices. This
setup has enabled E.ON to make progress toward its company-wide
reduction targets for direct and indirect emissions since the targets were
adopted.
The central teams of the Sustainability department and the Controlling &
Risk department have worked together to systematize the management of
E.ON’s climate-related risks as well. In 2020 this involved further
embedding climate-risk reporting into Group-wide risk management. The
“ESG Risks and Chances” section of the Risks and Chances Report provides
additional information.
Specific Actions
E.ON’s strategy update in 2021 included developing a Group-wide carbon
management plan that breaks down the Group-wide climate targets to the
business units and covers significant emission categories for Scopes 1, 2,
and 3. Like E.ON’s climate targets, the plan is geared toward the periods
2025-2030 and 2030-2040. Its purpose is to measure progress toward
these targets separately for each of E.ON’s business units, factoring in the
characteristics of their particular business, their strategic ambitions, and
the climate policies of the country or countries where they operate.
Examples include national targets for renewables growth, national climate
neutrality targets, and support measures to achieve these targets The plan
reflects E.ON’s general management approach: the Group sets the
strategic course and governance framework, while the units have broad
operational decision-making authority.
E.ON has designed an overarching climate transition plan for achieving its
climate targets. The plan describes the main levers for the three scopes of
emissions. It takes into account currently known major sources of carbon
emissions, and we do not expect to add any other sources in the future.
Scope 1 includes all direct GHG emissions from fuels that are directly
related to our business activities. The transition plan aims to reduce these
emissions by substituting electricity and heat output from gas-fired power
plants owned and controlled by us with output from renewable energy
sources. Existing plants will therefore require significant conversion. We
will shut down our few remaining coal-fired heat generation plants by
2030 and, at the same time, decarbonize other types of fossil-fueled
generation. Fugitive methane emissions from our gas distribution networks
account for a large proportion of our Scope 1 emissions. We can minimize
these emissions (by, for example, using innovative leak-detection
technologies), but can never completely prevent them. We are gradually
replacing other sources of fugitive emissions, such as the use of SF6 in
switching equipment, with climate-friendly substitutes. We also aim to
fully electrify our vehicle fleet (EV100) and make our buildings climate-
neutral by 2030. Purchasing green electricity and gas is one aspect of this.
Scope 2 are indirect GHG emissions from the generation of electricity that
the Company purchases to power its buildings, operations, and electric
vehicles or that is classified as network losses in its power distribution
networks. These emissions do not physically occur at E.ON’s facilities but
rather at an earlier link in the value chain where the electricity is generated.
This is why power distribution losses are classified as Scope 2 emissions
but gas distribution losses as Scope 1 emissions. Emissions attributable to
network losses are lower in network segments with lots of renewables
feed-in. Without market-based greening mechanisms recognized by
regulatory agencies, we depend on the progressive decarbonization of the
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E.ON Integrated Annual Report 2024
41
various national energy generation mixes. In general, networks losses scale
proportionally with the length of the grid. In Germany, for example, E.ON
invests an average of €400 to €500 million annually to expand its
electricity networks and thus to connect more renewable energy sources.
This leads to an increased flow of green electricity and thus to a reduction
in emissions from the compensation of electricity grid losses. In addition,
we intend to purchase electricity and gas for use in our buildings from
renewable energy sources or produced locally from green sources. A
roadmap specifies other measures, such as energy-efficient building
insulation designed to minimize E.ON buildings’ energy consumption.
Scope 3 are indirect emissions that occur upstream and downstream along
E.ON’s value chain. They result primarily from the generation of the
electricity the Company purchases and resells to its customers and the use
of the gas sold to them. Consequently, the steadily increasing share of
renewable energy sources in the various national electricity mixes
contributes significantly to the reduction of our Scope 3 emissions. Scope 3
also includes additional emissions that arise, for example, during the
production of goods procured by E.ON. Our transition plan foresees
achieving our Scope 3 decarbonization targets in part by using sustainable
products to transform our customers’ energy requirements. We actively
support our customers in switching from gas to green, energy-efficient
solutions like heat pumps as well as solar and PV systems. We are also
expanding our range of green energy contracts for our customers in order
to reduce Scope 3 emissions.
In line with the GHG Protocol, since 2020 we generally divide our
emissions from power and heat generation into emissions from “plants
owned and operated” (Scope 1) and “plants owned but leased to and
operated by lessee” (Scope 3) for increased transparency. The “Progress
and Measures” section below provides a detailed description of our
calculation methodology pursuant to the GHG Protocol.
We plan to invest a total of €43 billion in the energy transition from 2024
through 2028. This investment program is intended to accelerate the
expansion and digitalization of our energy infrastructure and the
development of decarbonization solutions. Around €35 billion of these
investments is supposed to go toward our energy networks, €5 billion
toward our energy infrastructure business, and €2.5 billion toward our
energy retail business. No investments in coal- and oil-based activities are
planned. Only limited funds will be invested in transitional technology for
natural gas. Because 98 percent of our taxonomy-eligible investments and
97 percent of our operating expenses are already taxonomy-compliant, our
transition plan foresees no specific measures to increase taxonomy
compliance. In principle, E.ON aims to maintain over 95 percent taxonomy
compliance, particularly with regard to its total investments. E.ON
generates the majority of its external sales from the sale of power and gas
to end-customers. The EU taxonomy does not cover these activities, and
we therefore do not place a strategic focus on them. The EU Taxonomy,
Financial Situation, and Forecast Report chapters as well as Note 14 to the
Consolidated Financial Statements contain more information about our
investments and their development.
Under E.ON’s holistic climate strategy, decarbonization measures follow a
clear hierarchy: avoidance and reduction of emissions in our own value
chain have the highest priority. E.ON funds measures to avoid or eliminate
emissions outside its value chain by purchasing voluntary carbon
certificates. Their purpose is to make a financial contribution to climate
protection. The associated projects are often located in developing and
emerging countries. E.ON currently uses emissions certificates to offset
emissions at the product level and at the present time does not factor the
amounts offset into its climate targets.
Given voluntary carbon markets‘ strategic importance, beginning in 2021
E.ON developed a comprehensive strategy for purchasing voluntary carbon
certificates. It includes a minimum quality standard for certificates
purchased, which we review and update on a regular basis. The standard
contains guidelines for verification mechanisms, certificate age, and project
types. E.ON sharpened its focus on certificate quality by beginning to work
with Sylvera, a carbon data platform and due diligence provider, in 2024.
We are currently developing an approach to future certificate purchases
that incorporates Sylvera’s ratings.
Another element of this strategy is E.ON’s partnership with the LEAF
Coalition, which has been in place since 2021. LEAF, which stands for
“Lowering Emissions by Accelerating Forest finance,” is the largest public-
private initiative against the deforestation of tropical rainforests.
Participants include the governments of Norway, the United Kingdom, the
United States, and South Korea and more than 20 companies. LEAF’s
carbon offset certificates aim to finance the protection of these forests and
to support sustainable management approaches that closely involve
policymakers and local stakeholders. The “Progress and Measures” section
below provides a comprehensive overview of our projects in the 2024
financial year.
E.ON has reported data on carbon emissions and climate action to CDP
since 2004. CDP, a global non-profit organization that operates the world’s
leading environmental disclosure platform, recognizes E.ON as a pacesetter
in climate protection and transparency.
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E.ON Integrated Annual Report 2024
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Goals and Performance Review
E.ON’s strategic transformation has led to a reorientation of its efforts to
reduce emissions. In 2020 the E.ON Management Board therefore set
climate targets In parallel, the Company developed KPIs that are relevant
for management control purposes; they are used, among other purposes,
to calculate the long-term compensation for Management Board members.
In 2024 the E.ON Management Board again reviewed and affirmed the
climate targets defined in 2020 and adjusted them to E.ON’s near-term
climate targets through 2030.5 Compared with the prior year, E.ON’s near-
term climate target for Scope 1 and 2 emissions for 2030 was specified to
be a target reduction of 50 percent relative to a 2019 baseline (instead of
the previous target corridor of 50 to 75 percent). The reason for this
change is to the absence of regulatory adjustments that would be
necessary to address emissions resulting from power network losses by
means of guarantees of origin in Germany.
In 2022 the Science Based Target initiative (“SBTi”) confirmed that E.ON’s
current near-term 2030 climate targets are consistent with the Paris
Agreement’s 1.5°C target. This means that E.ON’s planned Scope 1 and 2
emissions reductions accord with a global emission-reduction pathway
that limits global warming to 1.5°C relative to preindustrial levels. The
climate scenarios used for this assessment are global, sector-specific
climate scenarios from the International Energy Agency (IEA, B2DS 2017)
and the Intergovernmental Panel on Climate Change (IPCC, Global warming
of 1.5° C, 2018). We plan to reduce our Scope 1 and2 as well as our Scope
3 emissions by at least 50 percent (using the location-based approach) by
2030 relative to a 2019 baseline. In addition, we intend to reduce Scope 3
emissions from the resale of power to end-customers by 75 percent per
kWh by 2030 (intensity target). E.ON defines its climate targets relative to
2019, the first year it had consolidated emissions figures for its Group
setup following the innogy transaction. The year 2019 can be deemed
representative of market and weather conditions (energy demand, average
temperatures).
E.ON’s additional long-term climate targets are geared toward the
European Commission’s climate-neutrality target, which can generally be
assumed to be science-based because the EU has ratified the Paris Climate
Agreement and aligned its climate targets with it. Accordingly, E.ON plans
to reduce its GHG emissions over the long term and thus to achieve climate
neutrality by in Scope 3 by 2050 and, furthermore, to achieve climate
neutrality in Scopes 1 and 2 even earlier, namely in 2040. Consequently,
our reduction pathway foresee reducing our Scope 1 and 2 emissions by at
least 90 percent by 2040 and likewise our Scope 3 emissions by at least 90
percent by 2050. Both targets are relative to 2019 and provide for
offsetting any residual emissions in the target year. We validate our
5In defining and evaluating its own climate targets, E.ON refers to current scientific findings on climate change scenarios and their methodological classification by recognized organizations such as the SBTi. Statements on achieving the 1.5° target are subject to corresponding inherent
uncertainties from future-oriented information and underlying assumptions.
decarbonization pathway annually and publish the findings The baseline
year for the annual validation of our 2040 climate targets is likewise 2019.
Scope 3 emissions occur primarily during the generation of the power that
E.ON purchases and resells and during the use of the gas that E.ON sells.
We therefore quantify Scope 3 emissions from the generation of this
power by using the official national emission factors of the countries in
which we purchase the power that we resell to end-customers (see the
“Progress and Measures” section below).
The adoption of our climate strategy initiated actions to help us achieve the
aforementioned climate targets for 2030 and 2040, and thus to support
Europe’s energy transition. E.ON systematically monitors its progress
toward these targets. It is important to remember that year-on-year
comparisons of energy consumption can be affected by temporary
fluctuations caused by weather patterns and other factors. A period of
several years is necessary to determine whether E.ON’s actions are
effective and where we stand with regard to our targets. Since 2016 we
therefore assess the trend in more detail every three years. The trend
indicated that, so far, the reduction rate is in line with the forecasts. Along
with the adoption of the carbon management plan in 2022 (see the
“Specific Actions” section above) we refined this process by setting
reduction rates for our individual business units as well. The units have to
conduct controls on an annual basis so that we can see more exactly
whether we are making progress along the prescribed path. In addition,
each unit has the authority to pursue its own reduction targets that go
beyond the target for E.ON as a whole. The Group provides strategic
recommendations for action for this purpose.
We began the annual review of our qualitative scenario analysis in late
2023 (the “ESG Risks and Chances” section of the Risks and Chances
Report contains detailed information on the scenarios analyzed). This
involves carefully analyzing climate change‘s potential impact on our
technical systems and identifying necessary adaptation measures.
Weather extremes like strong winds, heavy snowfall, and lightning strikes
can affect overhead lines in our electricity networks in particular. We
minimize and counteract these risks by maintaining our infrastructure on
ongoing basis. But we also have a crisis management plan in place to
ensure our networks‘ operation and continually optimize network
management. This includes measures to ensure security of supply as well
as plans for disconnecting and reconnecting loads, emergency plans, and
alternative sources of supply to protect our infrastructure. These measures
ensure our distribution network’s reliability even under extreme conditions;
the Security of Supply chapter provides more detail. Our extensive
investments through 2028 aim to modernize our networks and make them
more resilient to climatic influences. Another way to protect against
weather impacts is to lay power lines underground; an example of this is
the underground cable project being conducted by Bayernwerk Netz, an
E.ON distribution system operator in southeast Germany.
Our scenario analysis relates to the period through 2050 in line with our
climate targets that were valid at the beginning of the reporting year—
namely, to completely decarbonize our Scope 1-3 emissions by 2050. Its
findings show that our statements from 2022 are still valid. The findings
for our most important businesses are as follows:
• Our electricity network business can, to a certain extent, absorb
weather-related risks while benefiting from the significant opportunities
presented by massive electrification.
• Decarbonization increases risks for our gas network business; however,
hydrogen may represent an opportunity to transform some parts of this
business.
• Higher carbon prices on fossil fuels are accelerating the conversion from
gas-based to electrified solutions, resulting in a greater reduction in
carbon emissions
• The opportunities from electrification outweigh the risks for our gas
commodity business, while volatility remains a source of risk in all three
scenarios.
• The risks of a mismatch between our solutions portfolio and our
customers’ ESG needs are outweighed by the opportunities arising from
the expansion of our current portfolio of decarbonization solutions.
• The electrification of transportation and the growth of solar energy offer
significant opportunities, although a future shortage of raw materials
could become an important problem.
The analysis indicates that the key value drivers of E.ON’s core business
remain unchanged. We identified minor adjustments in the updated
underlying scenarios that lead to an even more positive outlook for
electrification and decarbonization and offer significant opportunities for
E.ON. The outlook for gas and hydrogen, by contrast, is less positive.
Nevertheless, (regulated) electricity networks and decarbonization
solutions make up a large part of our business. The updated analysis
therefore shows that the advantages for E.ON’s business opportunities
outweigh the disadvantages.
The analysis’s findings are in line with E.ON’s strategy and investment
planning. For example, E.ON intends to significantly accelerate the pace of
growth of its businesses and digitalization. In view of future changes in
reporting requirements and upcoming significant updates to the climate
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E.ON Integrated Annual Report 2024
43
and transition scenarios, we plan to fully update the analysis for future
reporting cycles.
All of this makes it clear that E.ON‘s contribution to climate protection is
not limited to reducing its direct or indirect emissions. E.ON‘s expansion
and modernization of its electricity networks not only enable the
integration and distribution of renewable energy, but generally help make
the energy transition a success. Furthermore, E.ON’s solutions for energy
efficiency, renewables, and eMobility actively support its customers and
municipalities in reducing their carbon missions. Our smart grids and
customer solutions therefore not only help avoid emissions, but also make
a contribution to society by enabling a sustainable and low-carbon energy
supply outside our company.
The ”Specific Actions” and “Goals and Performance Review” sections of the
Sustainable Products and Services chapter describe other measures and
targets relating to climate-friendly energy generation and energy-
efficiency measures.
Progress and Measures
In line with ESRS E1 requirements, E.ON calculates its emissions using the
globally recognized WRI/WBCSD Greenhouse Gas Protocol Corporate
Accounting and Reporting Standard (“GHG Protocol”) for the now seven
GHGs covered by the Kyoto Protocol: carbon dioxide (“CO2”), methane
(“CH4”), nitrous oxide (“N2O”), hydrofluorocarbons (“HFCs”),
perfluorocarbons (“PFCs”), sulfur hexafluoride (“SF6”) and also nitrogen
trifluoride (“NF3”). CO2 is by far our biggest GHG. Other GHGs like SF6 and
CH4 contribute to E.ON’s climate impact. But they account for a much
smaller share of our GHG emissions than CO2. Global warming potential
(“GWP”) indicates how much GHGs affect global warming over a period of
time compared with CO2. All GHG emissions can be expressed as CO2
equivalents (“CO2e”) and therefore be accounted together.
We calculate Scope 2 emissions using a location-based method and a
market-based method. For its own management decision-making, E.ON
uses the figure determined by the location-based method, which is based
on the respective national generation mix. The market-based method
yields a different figure because it is based on the contractually attributable
generation mix of the Company’s electricity suppliers. However, the effort
required to identify every single provider that feeds electricity into each of
E.ON’s networks would be considerable. We therefore use the emission
factor of each country’s residual generation mix. In most cases, this factor
is significantly higher than the factor of the national generation mix.
Alongside ESRS E1 requirements, we use the Corporate Value Chain
(Scope 3) Accounting and Reporting Standard to calculate Scope 3
emissions. It defines 15 Scope 3 categories. E.ON conducts an analysis to
identify the Scope 3 categories that are significant for the Group. We
define as material those categories that account for more than 10 percent
of E.ON’s Scope 3 footprint. These are E.ON’s emissions from the
generation of electricity that the Company buys and resells to its
customers (activities related to fuels and energy that are not included in
Scope 1 or Scope 2) and from the use of gas sold by E.ON to its customers
(use of products sold).
In addition, E.ON reports Scope 3 emissions from purchased goods and
services including capital goods, downstream leased assets, business
travel, employee commuting, and leased vehicles (upstream leased assets).
These are below the materiality threshold set by E.ON and are also not
considered for management purposes but are relevant for many
stakeholders (such as our employees) and are therefore reported
voluntarily. For the E.ON Group, the remaining seven categories—upstream
transportation and distribution, waste generation in operations,
downstream transportation, processing of sold products, end-of-life
treatment of products, franchises, and investments—are below the
materiality threshold due to E.ON’s business model and are therefore not
reported.
Since E.ON removed large-scale fossil-fueled power generation from its
generation portfolio, it has procured power mainly from wholesale markets
where the source of generation is often not traceable or information about
the source is not reliable. When primary data are unavailable or of
insufficient quality, the GHG Protocol recommends calculating emissions
by using secondary data, such as industry-average data or government
statistics. We therefore calculate the Scope 3 emissions from the
generation of this power by using the official national emission factors of
the countries in which we purchase power resold to end-customers.
Furthermore, we also use market-based methods to calculate the
emissions of power resold to end-customers. The Company can actively
influence this figure by selling green power. This figure is therefore
relevant for management control purposes.
The proportion of E.ON’s market-based Scope 3 emissions calculated on
the basis of primary data totaled almost 96 percent in 2024 (location-
based: 45 percent). As described above, emissions from power resold to
end-customers calculated using the location-based approach are classified
as a secondary source. By contrast, we classify the market-based
calculation of emissions from power resold to end-customers as primary
data.
We have not identified any non-fully consolidated entities that must be
included in our GHG emissions reporting pursuant to ESRS requirements.
Our carbon footprint therefore encompassed fully consolidated
subsidiaries.
Our direct and indirect CO2e emissions totaled 65.71 million metric tons in
2024; of these, 3 percent were direct Scope 1 emissions, and 97 percent
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E.ON Integrated Annual Report 2024
44
were indirect Scope 2 and 3 emissions. Scope 1 emissions were at the
prior-year level, whereas indirect emissions declined by around 7 percent.
The emissions figures relevant for management control purposes were
used for these calculations: location-based Scope 2 emissions and market-
based Scope 3 emissions.
E.ON’s Scope 1 emissions amounted to 1.98 million metric tons of CO2e in
2024. They were thus slightly lower than the prior-year figure of
2.01 million metric tons of CO2e. The decrease is mainly attributable to the
fact that owned generation declined year on year owing to a reduction in
demand.
Emissions from power and heat generation were primarily due to our
distributed combined heat and power (“CHP”) plants. Our disclosure of
Scope 1 emissions from power and heat generation at leased plants has
been more transparent since 2020. We report emissions from downstream
plants leased by us as Scope 3 emissions. These are plants that we
installed at customers’ premises and that they operate as lessees for their
own needs. For heat, 63 percent of emissions come from owned
generation plants and 37 percent from leased plants. For power,
40 percent of emissions come from owned power plants and 60 percent
from leased plants.
► E.ON’s own generation assets enabled it to produce a total of 13 million
MWh of energy in 2024, of which 6 million MWh was renewable energy.
◄
Fugitive emissions at E.ON consist predominantly of methane (CH4) from
leaks in gas infrastructure as well as leaks of sulfur hexafluoride (SF6) and
coolants used in energy distribution equipment.
We recorded location-based Scope 2 emissions of 3.66 million metric tons
of CO2e in 2024. The higher figure compared with the previous year
resulted from an increase in power transmission and distribution losses due
to a rise in the amount of power fed back into higher network levels.
Renewables expansion and the increasing proportion of distributed
generating units in E.ON’s distribution networks are leading to higher
transmission losses in these networks. By contrast, E.ON’s investments to
maintain its networks help reduce network losses. E.ON’s approach
depends on the type of loss. Technical losses can be reduced through
network optimization. For this purpose, we are upgrading our networks
using smart-grid technology (more information can be found in the
Security of Supply chapter). This enables the lines and transformers to
adapt—in many cases automatically—to the actual production and
consumption in a given grid segment. However, technical losses can only
be reduced to a certain extent owing to the physical attributes of power
grids. Alongside technical losses there are also commercial losses, which
result primarily from theft. Network losses accounted for approximately 4
percent of the power E.ON distributed in 2024.
E.ON reduced its location-based Scope 3 emissions—which always account
for the largest share of its total carbon footprint—to 64.97 million metric
tons in 2024. We recorded a significant reduction of 8 percent year on
year, mainly because of the power and gas E.ON sells to end-customers.
The main factor was portfolio streamlining as part of our B2B strategy. The
market-based figure for Scope 3 emissions declined by about 5 million
metric tons of CO2e for the same reason. The Sustainable Products and
Services chapter contains more information about our green power
products.
► The Annex to the Sustainability Statement contains more details on
progress toward achieving our climate targets, in particular regarding
application requirement 48 with relation to disclosure requirement E1-6.
◄
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E.ON Integrated Annual Report 2024
45
► E.ON consumed 17 million MWh of energy in 2024, of which renewable
energy accounted for 43 percent. In line with E.ON’s business model, all
Group activities are assigned to the energy supply sector, which the ESRS
define as a sector with a high climate impact, because E.ON’s three
business divisions make it active in energy distribution, sales, and
generation. In addition, E.ON has water-supply activities, which is also
defined as a sector with a high climate impact. The ratio of E.ON’s energy
intensity to net revenues is 0.21 MWh per thousand €. ◄
The ratio of location-based emission intensity to net revenues is
0.85 metric tons of CO2e per thousand €, the ratio of market-based
emissions intensity is 0.88 metric tons of CO2e per thousand €. Revenues
are equal to net sales excluding electricity and energy taxes as shown in
the Consolidated Statement of Income.
► As already described, E.ON finances measures to avoid or remove
emissions by purchasing voluntary carbon certificates. Current projects are
shown in the table below. It provides an overview of carbon credits used in
the reporting year (“carbon credits retired”) and carbon credits to be used in
the future that have already been purchased (“carbon credits still to be
retired”). Retiring certificates means listing their use in the associated
public carbon credit register.
Greenhouse Gas Emissions
Total CO₂ equivalents in million metric tons1
2024
2023
Power and heat generation2, 3
1.844
1.875
Fugitive emissions
0.05
0.05
Company-owned vehicles
0.05
0.05
Fuels combustion6
0.04
0.05
Scope 1 Total
1.98
2.01
Power distribution losses (location-based)7
3.38
3.19
Power distribution losses (market-based)8,9
6.16
5.85
Purchased power (location-based)
0.28
0.27
Purchased power (market-based)
0.26
0.32
Scope 2 Total (location-based)
3.66
3.46
Scope 2 Total (market-based)
6.41
6.17
Purchased power sold to end-customers (location-based)7,10,11
33.08
35.95
Purchased power sold to end-customers (market-based)10,11
28.17
30.48
Combustion of natural gas sold to end-customers10
27.84
30.12
Purchased goods and services12
2.54
2.92
Power and heat generation (leased assets)2
1.4213
1.6114
Employee commuting15
0.06
0.06
Upstream processes of leased assets (leased vehicles)
0.03
0.03
Business travel
0.0116
0.0117
Scope 3 Total (location-based)
64.97
70.69
Scope 3 Total (market-based)
60.06
65.23
1The Department for Energy Security and Net Zero (DESNZ, formerly DEFRA/BEIS), the Greenhouse Gas Protocol, the Överenskommelse Värmemarknadskommittén and the IPCC AR6 report were used as
external sources for the global warming potential (GWP). The figures for Power and Heat Generation (Scope 1 and 3), fuel combustion (Scope 1), and purchased power (Scope 2) are partially based on
previous year values, which are used as approximations for the reporting year.
2In accordance with the GHG Protocol, emissions from power and heat generation are divided into emissions from plants owned and operated by E.ON (Scope 1) and emissions from plants leased to, and
operated by, customers (Scope 3). This improves our ability to manage our emissions and make progress toward our targets more transparent.
3The Greenhouse Gas Protocol and the DESNZ do not attribute any direct CO2 emissions to energy generated in renewable energy plants and nuclear power plants.
4This figure does not include 2,203 metric kilotons of CO2 from biogenic emissions.
5This figure does not include 2,292 metric kilotons of CO2 from biogenic emissions.
6To heat buildings.
7Based on the emission factors of the national electricity mixes for specific geographic regions (source: IEA).
8Based on the emission factors of the national residual mixes for specific geographic regions. A country’s residual mix emission factor represents the emissions and generation that remain after certificates,
contracts, and supplier-specific factors have been claimed and removed from the calculation (source: AIB).
9Power distribution losses in Sweden were almost completely offset by the purchase of green electricity.
10Scope 3 emissions from purchased power and the combustion of natural gas sold to end consumers (energy sold to our private and B2B customers) in accordance with the GHG Scope 3 Protocol. The
emissions from the distribution losses of energy sold to distribution partners and the wholesale market are recorded accordingly under our Scope 1 and Scope 2 emissions.
11Includes the purchase of electricity at E.ON-owned and publicly accessible charging stations.
12Including capital goods. Figure is based on E.ON specific purchasing data as well as data from secondary sources.
13This figure does not include 4.4 kilotons of CO2 from biogenic emissions.
14This figure does not include 3.8 kilotons of CO2 from biogenic emissions.
15Based on internal assumptions, we estimate that approximately 40 percent of our employees have worked from home.
16This figure includes compensation of around 814 tons of CO2, which has not been deducted from the stated value.
17This figure includes compensation of around 780 tons of CO2, which has not been deducted from the stated value.
Energy Consumption and Mix1 [•]
Megawatt hours in millions
2024
Fuel consumption from coal and coal products
0.43
Fuel consumption from crude oil and petroleum products
0.21
Fuel consumption from natural gas
6.02
Fuel consumption from other fossil sources
2.35
Consumption of purchased or acquired electricity, heat, steam,
and cooling from fossil sources
0.48
Total fossil energy consumption
9.49
Share of fossil sources in total energy consumption (%)
57
Consumption from nuclear sources
0.03
Share of nuclear sources in total energy consumption (%)
0
Fuel consumption for renewable sources, including biomass
6.94
Consumption of purchased or acquired electricity, heat, steam,
and cooling from renewable sources
0.10
The consumption of self-generated non-fuel renewable energy
0.01
Total renewable energy consumption
7.05
Share of renewable sources in total energy consumption (%)
43
Total energy consumption
16.56
1The figures are partially based on previous year values, which are used as approximations for the
reporting year.
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E.ON Integrated Annual Report 2024
46
In the case of retired credits, we also make transparent the type of project
the credits are based on. We distinguish between reduction and removal
projects: removal projects actively remove emissions from the atmosphere.
Reduction projects, by contrast, avoid emissions compared with an
alternative scenario in which the project is not conducted. Reduction
projects, such as forest-protection projects, make up by far the largest
share of the voluntary carbon credit market. E.ON currently procures a
higher proportion of credits relating to reduction projects than to removal
projects. Reduction projects are also subdivided according to the
certification mechanisms on which they are based. The mechanisms apply
different validation and certification standards for carbon credit projects.
E.ON purchases smaller quantities of removal credits and does not record
any carbon removals from projects in its own value chain. In addition,
carbon credits with a corresponding adjustment (“CA”) label can be
purchased on the market. A CA is a mechanism to prevent double counting
of emission reductions and removals in international transfers of carbon
credits in the accounts of the country of origin and the purchasing
organization. The market for CA credits is still in its early stages, which is
why E.ON has not yet purchased any carbon credits with a CA. E.ON is not
aware of purchased projects that had reversals in the reporting year (cases
in which a project’s carbon sink becomes a source of emissions, such as
through forest fires).
A monetary assessment of future GHG emissions or avoidance—known as
internal carbon pricing (“ICP”)—can be used to make business activities
more sustainable and propel progress toward GHG neutrality. ICP can be
used to assess future projects’ financial impact on the goal of GHG
neutrality and the promotion of sustainable measures. ICP includes the
shadow price, carbon taxes, internal emissions trading, and the implicit
price. This makes it possible to assess the costs associated with GHG
emissions and the promotion of low-carbon alternatives.
E.ON does not use Group-wide ICP because of the diversity of its business
models. The Energy Infrastructure Solutions business division, for example,
uses a shadow price in investment decisions on new energy infrastructure
assets. This relates to projects involving the construction and operation of
power, heating, and cooling plants. Energy Infrastructure Solutions strives
to be perceived as a pioneer for decarbonization solutions. Energy
Infrastructure Solutions therefore invests primarily in sustainable new
assets. Non-sustainable assets can pose a risk, because regulatory changes
or changes in demand may necessitate their decommissioning before the
end of their technical or contractual life. Energy Infrastructure Solutions’
investments must therefore meet certain sustainability criteria. If these
criteria are not or only partially met, the division’s Management Board
must approve the investment.
Sustainability criteria play a decisive role in our calculation of capital costs
and internal rate-of-return thresholds. Our prioritization logic gives
preference to projects that use renewable or hybrid systems. Solutions
with less sustainable characteristics are subject to higher minimum return
thresholds, which are priced in using a mark-up factor. Such solutions fall
in particular in the Scope 1 and 3 category “power and heat generation.”
They totaled 1.84 million metric tons of CO2e (93 percent of Scope 1
emissions) and 1.42 million metric tons of CO2e (2 percent of market-
based Scope 3 emissions), respectively, in the reporting year. ◄
> Our publication entitled “On course for net-zero: supporting paper for
E.ON’s decarbonization strategy and climate-related disclosures” explains
E.ON’s SBTi targets in detail. <
Environmental Management [ • ]
E.ON strives to assume responsibility for preserving the natural
environment and to minimize its business activities’ environmental impact.
The Nature.ON nature strategy that E.ON adopted in 2024 gives it a
pioneering strategic roadmap alongside climate protection.
The introduction of E.ON’s new nature strategy establishes a holistic
approach to the climate, ecosystems, biodiversity, resources, and waste
and integrates our objectives of having a net-positive impact on nature.
Consequently, E.ON is committed not only to reducing carbon (the Climate
Protection chapter provides details), but also strives to take specific steps
and make specific commitments in order to minimize its negative impact
on nature and to contribute to a net-positive impact on nature.
Our nature strategy will place our focus on three core areas: climate (which
remains the new strategy’s largest element), ecosystems and biodiversity,
and resources and waste. In addition, we will establish flagship projects for
each core area that demonstrate our commitment by means of specific
measures. Environmental management is therefore a central component in
achieving the objectives.
E.ON operates distribution networks in various European countries.
Environmental management therefore places particular emphasis on
protecting and promoting natural habitats and the diversity of ecosystems
and species in the vicinity of this network equipment. Furthermore, we aim
to address primarily these environmental aspects: conserving wastewater,
water, and other resources, reducing emissions, and generating less waste
Carbon Credits [•]
Total CO₂ equivalents in metric tons
2024
Carbon credits retired in the reporting year
672.06
Share of removal credits in %
0
Share of avoidance credits in %
100
Share of Gold Standard in %
82
Share of Plan Vivo in %
0
Share of Verra in %
18
Share of other certification mechanisms in %
0
Share of projects in the EU in %
0
Outlook
Carbon credits to be retired in the future
925.07
Carbon Removals
Nature-based removal credits (e.g. afforestation projects)
0.00
Technology-based removal credits (e.g. direct air capture
projects1)
0.00
Carbon Credits purchased in the reporting year2
0.00
Nature-based removal credits (e.g. afforestation projects)
0.00
Technology-based removal credits (e.g. direct air capture
projects1)
0.00
Carbon removal from projects in the own value chain
0.00
Reversals
0.00
1Direct Air Capture (DAC) is the name given to chemical-technical processes for extracting carbon
dioxide (CO2) from the ambient air.
2Corresponds to Carbon Removal Credits in the upstream and downstream value chain
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E.ON Integrated Annual Report 2024
47
at our facilities and offices as well as enabling compliance with all
international and national environmental laws and regulations at all times.
E.ON’s Approach
Our nature strategy is based on the issues and criteria defined by
frameworks such as the Science Based Targets Network (“SBTN”) and the
Taskforce on Nature-related Financial Disclosures (“TNFD”). We conducted
a gap analysis to assess our business activities’ impacts, dependencies,
risks, and opportunities in relation to water and marine resources,
biodiversity, ecosystems, and resource use. It included insights from
existing processes—such as environmental management systems—used to
analyze site-related environmental aspects across the life cycle and to
engage with affected communities as well as insights from our risk
management system and projects relating to identification and
assessment. It did not involve conducting site-specific analysis within the
meaning of ESRS E2, E3, and E5 IRO-1. The “Specific Actions” section
below contains more information on ESRS E4 IRO-1 under “Biodiversity
and Ecosystems.” Based on the findings, only the topic of climate
protection was declared as material in the sense of the CSRD. In addition,
in the years ahead we will focus more on individual sub-issues relating to
environmental protection, because they fit with the objectives of our
Environmental Protection Guideline, which we updated in 2024. It was
published in the first quarter of 2024 and contains the following five
commitments: “We protect ecosystems,” “We steer our organization
toward ecosystem protection,” “We maximize our impact,” “We set clear
targets,” and “We engage for environmental protection.”
We use our energy management system to continually look for
opportunities to optimize the Group’s energy consumption and the energy
efficiency of our processes. It enables us to reduce greenhouse gas (“GHG”)
emissions and thus also plays an important role in E.ON’s environmental
and sustainability management. Combining these topics underscores that
E.ON is equally committed to protecting people and the environment.
E.ON is interested in business relationships solely with companies that
share its commitment to environmental protection. Consequently, we
strive for our suppliers and contractors to comply with our environmental
standards, and to have a certified environmental management system in
place.
Guidelines and Policies
Environmental Management Systems
All E.ON units—except for units with non-material environmental risks—
strive to have an environmental management system that is certified to
ISO 14001 or validated by means of the Eco-Management and Audit
Scheme (“EMAS”), which identify and evaluate all relevant environmental
aspects of our business activities across the life cycle. At year-end 2024,
81 percent of E.ON employees worked in business units that met this
requirement.
E.ON uses the environmental management system it has deployed (ISO
14001) to identify relevant facility-specific environmental aspects of the
life cycle and to evaluate the resulting local opportunities and risks. In this
context, E.ON uses consultation processes as an opportunity to exchange
information with affected communities. The aim is for the Group to
minimize and/or continually reduce its impact on the environment and
communities.
Energy Management Systems (“EnMS”)
ISO 50001 is an international standard whose purpose is to enable
organizations to continually improve their energy efficiency.
In accordance with the German Energy Services Act (German abbreviation:
“EDL-G”), E.ON has also introduced ISO 50001 certification in units that
already have an HSE management system. At year-end 2024, 61 percent
of E.ON employees worked in business units with ISO 50001 certification.
E.ON measures and analyzes the energy use of facilities, vehicle fleets, and
buildings at all of these units. The data help us identify opportunities for
energy conservation and take cost-effective measures to improve energy
efficiency. All units in Germany without ISO 50001 certification conduct
energy audits in accordance with DIN EN 16247 under the EDL-G. The
Climate Protection and Occupational Health and Safety chapters contain
more information about measures and guidelines.
As part of the EnMS, the energy teams at E.ON’s matrix companies in
Germany and its companies in other countries sets annual targets and
conducts systematic audits to monitor the effectiveness of the measures
taken to achieve them. It also conducts an annual management review,
which is audited by an accredited certification organization. These
mechanisms confirmed the EnMS’s effectiveness.
Organization and Responsibilities
The Group’s central Sustainability department played a leading role in
developing company-wide climate protection targets and has since then
been monitoring progress toward them. E.ON’s units are responsible for
taking steps to reduce their emissions, those caused by their business
activities, and other environmental impacts. Effective March 2024, the
central Sustainability department is responsible for the environmental
issues (biodiversity, environmental management, waste, and energy
management) that were previously part of the Health, Safety, and
Environment (“HSE”) division. On balance, this results in these issues
receiving greater strategic significance, which our nature strategy will
further substantiate starting in 2025. The business units are supported in
their efforts by local sustainability and HSE teams, which, for example, help
design regional energy-efficiency measures and share ideas and best
practices. The Climate Protection chapter contains information on E.ON’s
carbon management plan.
The E.ON Environmental Network (“EEN”) is a forum for sharing
information about business-related environmental issues, environmental
management, sustainability, and related law. The EEN brings together
experts from the Energy Networks and Customer Solutions segments and
the HSE and Sustainability teams. They work together closely in the EEN,
which meets on a quarterly basis, usually virtually. Since the EEN was
founded, its reach in the Group has extended continually. Its existing
working groups—commercial waste, ISO 14001 environmental
assessment, and networking of biodiversity and environmental protection
projects—were supplemented in 2024 by the launch of a circular economy
working group. Besides the German EEN, E.ON also has an international
EEN, which brings together E.ON colleagues outside Germany. Both
forums met several times in 2024. We intend to expand these networks in
the years ahead and transform them into Group-wide information-sharing
platforms.
Specific Actions
E.ON employees and managers are required to report environmental
incidents. They use an IT application called PRISMA (Platform for
Reporting on Incident and Sustainability Management and Audits) for this
purpose (the Occupational Health and Safety chapter contains more
information on PRISMA and E.ON’s incident management).
Energy Management
E.ON has taken several steps to improve the energy efficiency of its
facilities in Germany. Its heat supply companies implement measures to
optimize their networks. Its gas and power network companies conduct
measures to improve the energy efficiency of network equipment. Other
steps include installing sensor-controlled LED lighting in buildings and
parking garages and reducing the energy consumption of ventilation and
air-conditioning systems. We also adjust the heat in our buildings as
needed (the Energy Affordability chapter contains more information about
energy conservation).
eMobility
In 2017 E.ON began offering its employees in Germany incentives to
embrace eMobility. They include discounted leasing contracts for electric
vehicles (“EVs”), at-home charging points, and certified renewable power
tariffs, which enable employees to charge their EVs with clean energy.
E.ON’s Car Policy for the procurement of company cars and leased vehicles
unambiguously supports the use of all-electric and hybrid vehicles. More
information on our eMobility efforts can be found in the Sustainable
Products and Services chapter.
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48
Environmental Impact Assessments
For projects to build new power lines, gas pipelines, and other large
industrial facilities with a foreseeable environmental impact, E.ON
conducts an environmental impact assessment during the development
phase to obtain construction and operating permits. In addition, the
operation of facilities is monitored to check whether the previous
assessments were correct. In addition, E.ON maintains an ongoing dialogue
with local stakeholders and interested parties on numerous environmental
issues. Examples include Q&A sessions for nearby residents and
information events conducted jointly with municipal decision-makers.
Biodiversity and Ecosystems
In the preparatory phase of the nature strategy developed in 2024, E.ON
began to analyze the extent to which its business model impacts
biodiversity. The analysis took into account the frameworks of the Science
Based Targets Network (“SBTN”) and the Taskforce on Nature-related
Financial Disclosures (“TNFD”). It included E.ON conducting a biodiversity
impact assessment. We used standardized industry data from the ENCORE
platform and geodata to assess more than 100 facilities and suppliers. The
findings are divided into the dependencies of E.ON’s business activities on
ecosystem services and these activities’ impacts on ecosystem services.
Energy infrastructure unavoidably impacts surrounding ecosystems,
particularly at facilities in or near areas whose biodiversity needs
protection. This therefore also applies to the facilities of E.ON, Europe’s
largest distribution network operator. E.ON’s highest dependency on
ecosystem services is hydroelectricity. The most important ecosystem
services for E.ON’s overall business are flood and storm protection. The
production processes with the highest impact are energy from biomass,
hydropower, and heat plants. We continue to view our powerline corridors
as a lever for enhancing biodiversity and are using ecological corridor
management to address it.
As part of its new nature strategy, E.ON intends to further increase
transparency about its impact on biodiversity and ecosystems and expand
its biodiversity measures. E.ON also takes steps to protect natural habitats
and to specifically promote biodiversity, such as bird safety at E.ON
distribution system operators (“DSOs”). In addition, E.ON has set up a
Group-wide digital platform for biodiversity and environmental protection
projects to enhance this issue’s visibility and the exchange of information
about it.
E.ON has developed an approach for ecological corridor management
(“ECM”) and introduced it Group-wide in 2023 as a standard for vegetation
management in all areas under and near 110 kV high-voltage overhead
power lines where ECM is potentially practicable. We intend to extend the
ECM rollout to all of the Group’s DSOs in Europe by the end of the decade.
ECM enables E.ON to make a contribution to creating and maintaining
permanently stable biotopes and structures and to promoting species
protection, biodiversity, and the interlinking of valuable biospheres.
Through 2029, we plan to invest a figure in the double-digit million range
and to implement ECM along the 13,000 kilometers of our high-voltage
lines. ECM was applied to 19 percent of relevant areas in 2024 (prior year:
12 percent). Our ECM approach has been acknowledged outside E.ON as
well and received the Renewables Grid Initiative’s (“RGI”) 2023 Grid Award
in the Environmental Protection category.
Waste Management and Circular Economy
E.ON periodically compiles environmental key performance indicators for
waste. At the start of 2023, we began to catalog, in a structured way, our
activities relating to a circular economy and to develop a circular economy
strategy, which was further implemented in 2024 as part of our nature
strategy. The new strategy commits E.ON to achieving “maximum
circularity in the energy sector.” We aim to achieve this by increasing the
proportion of recycled content in newly purchased components, extending
the average lifespan of existing assets, and reusing and refurbishing key
components in the network business. In addition, E.ON has been involved
in the BDI’s Circular Economy Initiative since the beginning of 2024 and is
also a member.
As part of this strategy, a cross-disciplinary team of employees drawn from
the Strategy and Purchasing departments launched an in-house
marketplace to establish a Group-wide secondhand market.
Sulphur hexafluoride (SF6) may be used in E.ON‘s Energy Networks
business division to insulate medium and high-voltage switchgear. After
assessing E.ON‘s impact on the environment and society, we do not
consider SF6, which is used in closed systems and is properly disposed of,
to be a material substance of concern for environmental pollution due to
the small quantities involved. However, we do of course take SF6 into
account when calculating our greenhouse gas emissions; the Climate
Protection contains more information about this.
Goals and Performance Review
The E.ON Management Board is informed about serious environmental
incidents (category 3 in our Standard on Incident Management) by means
of monthly reports from HSE and periodic consultations with the Senior
Vice President for HSE. In the case of a major incident (category 4), the unit
at which it occurred reports it directly to the E.ON Management Board
member responsible for the respective unit and to Group HSE within 24
hours.
Progress and Measures
Circular Economy, Waste Avoidance, and Recycling
E.ON always tries to avoid creating waste and, when this is not feasible, to
recover as much of it as possible. If neither avoidance nor recovery is
possible, we ensure, in accordance with legal requirements, that waste is
disposed of correctly and responsibly. E.ON’s operating business generates
hazardous and non-hazardous waste, as does the retirement of some
assets, such as the dismantling of the Company’s nuclear power plants
(“NPPs”) in Germany.
> E.ON’s total amount of non-hazardous waste increased from
496.1 metric kilotons in 2023 to 652.7 metric kilotons in 2024. The
increase in 2024was attributable to extensive construction activity at our
network business and the associated increase in excavated soil. E.ON
recycled 91 percent of its non-hazardous waste.
E.ON produced 196.1 metric kilotons of hazardous waste in 2024, about 9
metric kilotons less than in 2023. The year-on-year reduction in hazardous
waste was due in part to volatility in dismantling projects to remove
hazardous waste and also to improved data from waste-management
companies. Of the total amount, 80 percent was recycled. <
Other Atmospheric Emissions1 [x]
Metric tons
2024
2023
NOx emissions
1,654
2,501
SO₂ emissions
519
828
Dust emissions
26
53
1For generation assets over 20 MW.
> Fossil-fueled power plants emit nitric oxide (“NOX”), sulfur dioxide
(“SO2”), and dust. This type of power generation is no longer a core E.ON
business. It is therefore no longer considered a core KPI. E.ON now focuses
on small-scale, embedded generation units. NOX, SO2, and dust emissions
result mainly from small gas-fired CHP plants and larger plants for district
heating networks. The year-on-year decline in other atmospheric
emissions reflects in particular a reduction in the use of coal for power
generation. <
Responsible Water Management
To ensure responsible water use, E.ON takes specific measures to identify
and use water resources sustainably. The NPP operated by
PreussenElektra withdrew cooling water for power generation for the last
time in 2023; since then, only maintenance has been conducted.
Consequently, E.ON’s water-related activities currently relate to the
withdrawal of fresh water by E.ON’s water utility subsidiaries, Rheinisch-
Westfälische Wasserwerkgesellschaft (“RWW”) and Avacon Wasser, as
well as a small amount in conjunction with our decentralized heating
business. In addition, LEW operates a number of small and medium-sized
run-of-river power plants in Germany with an installed capacity of 0.5 to
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E.ON Integrated Annual Report 2024
49
12 MW per system, which only accounts for a small share of E.ON’s
electricity generation.
> RWW and Avacon Wasser supply about 970,000 people, industrial
enterprises, and businesses in Lower Saxony, North Rhine-Westphalia, and
Saxony-Anhalt with roughly 97.1 million m3 of water annually, of which
45.8 million m3 is groundwater, 51.2 million m3 is surface water, and
0.2 million m3 is spring water. <
Accordingly, this business involves the extraction of water as a resource
and its treatment as well as final distribution to end-users; it also includes
the reuse of wastewater and thus the closing of the water cycle. Although
water operations account for only a small proportion of the Group’s total
sales, we pay particular attention to the associated consequences from the
perspective of resource conservation and supply security. We use two KPIs
to assess the water utility business’s risks: total withdrawal and
distribution losses. Withdrawal is the amount of water supplied to end-
users; that is, not water used in our own operations. The basis for a
permanent supply of water is a climate with sufficient precipitation to
allow surface and groundwater to reform. This can generally be anticipated
in RWW’s and Avacon Wasser’s service regions. The regions’ available
surface water and groundwater reserves will secure drinking and process
water requirements.
The purpose of recording total water withdrawal is to identify and assess
water risks using WRI’s Water Risk Atlas. E.ON consults with affected
communities in Germany as part of the granting of rights to withdraw
water for water suppliers on the basis of the Water Resources Act (German
abbreviation: “WHG”) and the respective state water laws. We measure
infrastructure leakage index (“ILI”) by monitoring our pipeline network on a
regular basis and conducting leakage tests in accordance with international
standards.
Based on available data, E.ON assesses the current, and the potential
challenge of future, water scarcity in the relevant regions in which E.ON
uses fresh water for its activities to be generally low. Additional disclosures
on E.ON’s water withdrawal and risks areas can be found in the ESG
Figures.
Water and climate protection go hand in hand at E.ON’s water utilities: we
conduct a variety of projects to address both issues and are always looking
for new, more environmentally compatible solutions for wastewater
disposal, sewage sludge recycling, as well as service water and rainwater
utilization. For example, we are designing plans for smart water use in new
residential areas and working on flood-protection systems in
municipalities. Conducting research and development projects enables us
to investigate innovative solutions for qualitative and quantitative water
protection, such as additional potential resources for irrigation.
In addition, RWW and Avacon Wasser provide information on the careful
use of water as a resource. Important channels are the company websites
and press releases. For example, during the summer months RWW gives
its customers advice on the careful, appropriate use of fresh water. In
addition, RWW has operated educational facilities—Aquarius and Haus
Ruhrnatur—since 1992, in which visitors can learn about topics related to
water supply and preventive water protection. Museum educators at the
two educational facilities offer various lessons on water and environmental
protection to schools in RWW’s service territory.
Infrastructure leakage index (“ILI”) enables water utilities to measure and
compare water losses. ILI is a KPI for assessing water losses that is widely
used and recognized internationally. ILI factors in not only the amount of
water loss, but also the relevant parameters (such as pipeline system
length and pressure). Unlike the KPI commonly used in Germany (specific
actual water loss, or QVR), ILI offers better comparability with structurally
similar companies and better guidance for a company’s own water
management.
> By international standards, E.ON’s ILI of less than 1.5 puts it in the best
leakage performance category of A (ILI ≤2). <
Drinking water reduction targets in our water utility business have to do
with reducing leakages at water utility facilities. Pursuant to Technical
Annex 5.1 of the EU taxonomy, E.ON has set a target of reaching and
consistently maintaining an ILI of less than 1.5 (very efficient performance,
target figure of low leakage). As in the prior year, we met this target for
2024. We do so by conducting targeted maintenance measures to
minimize damage rates at water distribution facilities. In addition, continual
network monitoring and water leakage analyses make it possible to
recognize damage at water distribution facilities early and to actively
eliminate it. We measure the amount of water delivered to our customers
by using metrologically highly efficient water meters and thus by
minimizing metering errors.
> After PreussenElektra’s Isar 2 NPP shut down in April 2023,
PreussenElektra temporarily withdraws fresh water to ensure heat
dissipation in the intercooling system. It withdrew a total of 132 million m3
(2023: 203 million m3). Of this, it consumed 1 million m3 of fresh water
and discharged 131 million m3 (2023: consumed 13 million m3, discharged
191 million m3). <
Safe Handling of Radioactive Waste
PreussenElektra is responsible for the safe and reliable post-operation and
dismantling of its nuclear power plants (“NPPs”). Both activities result in
radioactive waste. E.ON is well aware of the high responsibility that is
associated with both.
The Law on the Reorganization of Responsibility in Nuclear Waste Disposal
(Entsorgungsübergangsgesetz, or “EntsÜG”) and the contract to finance
the costs of the nuclear energy phaseout between the German federal
government and German NPP operators stipulate the division of
responsibility for radioactive waste interim storage and final disposal and
its financing.
E.ON aims to minimize the amount as well as the volume of radioactive
waste. We do this in part by separating it from uncontaminated materials
and by subjecting it to certain treatments that reduce its volume. The
nuclear industry distinguishes between radioactive waste that generates
negligible heat—low-level waste (“LLW”) and intermediate-level waste
(“ILW”)—and waste that generates heat: high-level waste (“HLW”):
• LLW and ILW account for the largest amount of radioactive waste in
terms of both weight and volume. Examples of LLW include protective
clothing, cleaning equipment, tools, and building rubble from plant
control areas. ILW includes, in particular, the reactor pressure vessel’s
near-core components. Together, the two waste categories contain less
than 1 percent of an NPP’s total radioactivity.
• HLW contains more than 99 percent of an NPP’s total radioactivity and
consists primarily of the fission products of uranium in the irradiated fuel
assemblies.
NPP operators are obligated to package LLW and ILW safely and according
to officially approved procedures. After conditioning and documentation
are completed, official confirmation of “proper packaging” transfers
ownership to the German federal government. The German federal
government is then responsible for the interim and subsequent final
disposal of LLW and ILW. The Law on the Reorganization of Responsibility
in Nuclear Waste Disposal likewise transferred the responsibility for
operating defined interim storage facilities for LLW and ILW. Pursuant to
this law, the German federal government is the owner and therefore
pursuant to nuclear law responsible for the following former
PreussenElektra storage facilities effective January 1, 2020:
Grafenrheinfeld, Stade, Unterweser I and II, and Würgassen interim waste
storage facilities.
The approved Konrad repository for LLW and ILW is currently being built
by BGE, the German Federal Company for Radioactive Waste Disposal.
BGE expects Konrad to be commissioned in 2029.
Under the Law on the Reorganization of Responsibility in Nuclear Waste
Disposal, which took effect on January 1, 2019, the interim storage
facilities and containers of irradiated fuel assemblies inside them have
become the property and responsibility of the German federal government.
HLW transport and storage containers will remain in the German federal
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E.ON Integrated Annual Report 2024
50
government’s interim storage facilities until a final storage facility for this
waste enters service in Germany.
> For 2024 PreussenElektra submitted notification for 1,527 metric tons
of LLW and ILW(2023: 1,374 metric tons). The amount of waste is subject
to fluctuations, depending on the NPPs’ dismantling activities. As in the
prior year, HLW amounted to 0 metric tons due to the decommissioning of
NPPs. New fuel rods were installed in Isar 2 NPP—which continued to
operate temporarily until April 15, 2023—for the last time in October
2021. <
Sustainable Products and Services [+]
Greenhouse gas emissions cannot be limited only by the way energy is
generated. Energy efficiency and other methods of reducing consumption
as well as energy recovery can lower emissions, too. E.ON has a broad
portfolio of such solutions, which it markets to residential customers and
to industrial, commercial, and municipal customers. E.ON continually
adjusts this portfolio to better meet its customers’ needs, respond to
market changes, and utilize new technologies.
E.ON’s Approach
E.ON offers distributed energy systems for households under the brand
name Future Energy Home. Customers can use a variety of solutions: solar
modules for generating their own energy and battery systems for storing it
as well as charging stations for electric vehicles (“EVs”), heat pumps, and
other heating solutions. The devices are connected to E.ON Home, an
energy-management app that was launched in 2018. Regardless of where
they are, customers can use the app to view their home’s energy output
and consumption, control their devices, and reduce their energy use and
carbon emissions. E.ON added new functions to the app in 2023,
particularly for electromobility (“eMobility”). The aim is to enable
customers to conveniently and automatically charge their EV when energy
is cheaper and greener.
For digital energy-management solutions to function seamlessly, smart
energy meters are essential. An EU Directive from 2021 stipulates that, to
the degree technically and financially feasible, all customers should have a
smart energy meter. Member states must transpose this directive into
national law. For example, the German Metering Point Operation Act
(Messstellenbetriebsgesetz) envisages the extensive installation of smart
energy meters at all metering points by 2032.
Also, eMobility will play a significant role in the energy transition.
Germany’s transport sector emitted around 148 million metric tons of CO₂
equivalents (“CO2e”) in 2021. The German Climate Protection Act, which
was amended in 2021, calls for these emissions to be reduced to a
maximum of 85 million metric tons of CO2e per year by 2030. To achieve
this, passenger car and road freight transport must be climate-neutral and
the range of alternative drivetrains and the infrastructure to supply them
with energy must be massively expanded. One million publicly accessible
charging points are to be installed in Germany alone by 2030. In addition,
there will be charging points in eCar drivers’ home and business
environments and at the premises of EV fleet operators. E.ON’s objective is
to use its experience in the energy sector to enable EV charging in public
places, at work, and at home.
E.ON offers comprehensive infrastructure solutions to make charging both
economical and climate-friendly. Under its E.ON Drive brand, E.ON plans
and installs charging stations and connects them to the power grid. E.ON is
also responsible for supplying energy and operating the equipment. Our
eMobility business continues to focus on three areas: E.ON Drive Solutions
serves private and business users. Its focus is on offerings for charging at
work, on the go, and at home, which include a variety of wall-mounted
chargers as well as related installation and energy services. In addition,
E.ON Drive eTransport is engaged in charging solutions for the
electrification of commercial vehicles. E.ON Drive Infrastructure is a charge
point operator (“CPO”) and thus provides charging infrastructure in public
places.
Distributed, flexible, and connected supply systems are crucial for the
future energy world. E.ON wants to propel their development with its
Energy Infrastructure Solutions (“EIS”) business. This business develops
energy units with the aim of sustainably supplying cities and municipalities,
as well as commercial and industrial customers, with heat (steam), cooling,
and electricity. Its portfolio includes district heating and cooling, distributed
solutions for city districts and industrial and commercial customers as well
as products and services for greater energy efficiency. EIS’s offerings
incorporate the latest technology, including large-scale heat pumps,
combined-heat-and-power (“CHP”) and energy-recovery plants as well as
waste-heat recovery and low-temperature heating and cooling networks.
Some solutions are complemented by software-based solutions and
analytics that enable customers to reduce their energy consumption, costs,
and greenhouse gas emissions by visualizing and optimizing their energy
use.
Digital solutions along the entire energy value chain represent an important
enabler for tackling the energy transition’s challenges. E.ON One offers a
portfolio of innovative digital solutions to accelerate the energy transition.
Its product portfolio encompasses a broad spectrum of use cases and
ranges from grid connection solutions (SNAP, One Portal), a cloud-based
management system for active energy management (Optimum), intelligent
heating control systems and intelligent data management tools (IHC),
retrofit solutions for digitalizing existing energy and non-energy
components (SMO), a digital twin for energy networks (envelio), SaaS
white-label eMobility solutions that offer electric charging solutions (elvah)
as well as a digital platform that uses modern gateways (gridX) to manage
distributed energy resources (XENON). E.ON One contributes directly to
reducing energy consumption and optimizing energy use for numerous
customer groups.
Organization and Responsibilities
Our Chief Operating Officer–Commercial, who is a member of the E.ON
Management Board, has overall responsibility for the entire customer
business, including the Customer Solutions segment. E.ON Energy
Infrastructure Solutions (“EIS”) and Business-to-Customer (“B2C”) work
with various E.ON business units on a wide range of topics, such as product
development, plant operation, and sustainability management.
Responsibility for this lies with the regional units for their respective
market (including Western, Central, and Eastern Europe, the United
Kingdom, and Scandinavia).
E.ON’s distribution system operators (“DSOs”) across Europe, which are
part of the Energy Networks segment, are responsible for installing smart
energy meters in their service territories; the exception is the United
Kingdom, where E.ON’s retail organization provides them to its customers.
German law created two roles for the provision of smart energy meters.
The first role, the default metering provider, is responsible for the mass
rollout of the standard smart energy meter mandated by German law. At
E.ON, this role is performed by its DSOs. The second role, the competitive
metering service provider, offers the standard smart energy meter as well
as other metering solutions. At E.ON, this role is performed by its German
retail sales unit. In addition, E.ON subsidiaries act as smart-meter service
providers for municipal utilities and regional energy suppliers in Germany.
Specific Actions
Being an eMobility provider (“EMP”) enables us to give eCar drivers access
to our charging network. This network also includes charging points from
other providers that are available to E.ON customers as roaming options. In
addition, we offer residential customers innovative charging stations and
specific electricity tariffs. We supply our commercial customers with both
regular and fast-charging stations. Furthermore, we support them with
solutions for EV fleet management.
On the commercial vehicle side, E.ON Drive aims to capitalize on growth in
the market segments of electric road haulage and public passenger
transport as well. Battery-powered commercial vehicles are still the
exception, especially in the heavy-duty category. Unlike the passenger car
market, the transportation sector is only at the beginning of its evolution
toward zero-emission mobility. But interest among companies and
municipalities in electrifying their truck, bus, and van fleets is growing.
Climate targets, increasing freight transport, and the growth trajectory of
electric drives in local and long-distance public transport will pose greater
challenges for charging infrastructure, land use, and grid connections as
well. E.ON wants to help fleet operators meet these challenges by
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E.ON Integrated Annual Report 2024
51
significantly expanding its portfolio of products and services for charging
fleets of electric commercial vehicles.
EIS focuses on customer relationships to develop integrated energy
solutions for heating, cooling, electricity, and steam. These solutions
address different stakeholders’ needs, like using waste heat from industrial
processes for district heating. EIS has and will continue to enter into long-
term energy partnerships with municipal, industrial, and real estate
customers across Europe to support them in achieving sustainability goals.
In 2024, for example, EIS signed a partnership with Koelnmesse to realign
and expand the trade fair operator’s energy infrastructure cost-effectively
and carbon-neutrally by 2035. This will involve replacing natural gas with
renewable energy and using the district heating network as a virtual
seasonal heat storage system in summer.
Goals and Performance Review
E.ON wants to offer its customers pioneering energy solutions for the
energy world of today and tomorrow. We want our solutions to help them
save money, use less energy where possible, and emit less carbon dioxide.
E.ON has set a target for this: by 2030, the Company aims to reduce
customers’ carbon dioxide emissions by 50 percent relative to 2019 (the
Climate Protection chapter contains more information about E.ON’s
climate targets).
E.ON’s goal is to equip all its customers with a smart energy meter in the
markets covered by the EU directive. However, regulatory delays in the
certification of the communication units, known as smart energy meter
gateways, prevented DSOs in Germany from starting to gradually rollout
smart energy metering systems until February 2020. Until the responsible
federal authority withdrew the market declaration in May 2022, the rollout
of smart energy metering systems in Germany proceeded according to
plan. Since then, it has continued on a reduced scale. A renewed ramp-up
required an amended law that took effect in mid-2023.
The E.ON Drive Infrastructure team invests in, builds, and operates
charging infrastructure at publicly accessible locations to support the
development of a Europe-wide network. It aims to expand its network by
1,000 high-power charging points per year and is focusing on three key
use cases to achieve this target: in the immediate vicinity of densely
populated residential areas, city centers, and attractions; in partnership
with high-traffic destinations, such as supermarkets, hotels and
restaurants, and along freeways.
The impact that EIS’s projects in the industrial sector have on our
customers’ sustainability can be measured by a variety of KPIs. These KPIs
range from carbon-emissions savings to reductions in energy costs and
consumption including reductions in final energy consumption (such as
electricity) as well as primary energy usage (for example, fuel consumption
to generate electricity or heat). Due to country-specific standards and
reporting obligations, however, these KPIs are not consistently
consolidated Group-wide.
Depending on the project and customer requirements, we also use a variety
of KPIs to evaluate the effectiveness of EIS solutions for customers in the
real estate and housing sector. These KPIs include primary energy
consumption (such as the use of gas to generate heat), avoided emissions
(typically CO2), and the deployment of renewable generation technologies
(such as geothermal energy and heat pumps) in new property
developments. Targets for these KPIs differ based on customer demands
and market standards. Teams from our regional units monitor these EIS
projects on a regular basis.
Progress and Measures
Installed Smart Energy Meters by Country [•]
Thousand units
2024
2023
Rollout countries
United Kingdom
6,435
5,830
Germany1
6,909
5,824
Sweden
1,050
1,052
Pilot countries
Romania
545
451
Hungary
517
411
Czech Republic
36
25
Poland
361
211
Total
15,853
13,804
1Includes digital meters.
EU Taxonomy [•]
General Principles
The European Commission’s action plan on financing sustainable growth
defined a series of measures to channel capital toward environmentally
sustainable activities and thus to help enable the European Union to
become climate-neutral by 2050 as foreseen by the European Green Deal.
The Commission laid the foundation for this in Regulation 2020/852, the
EU Taxonomy Regulation, which describes what is considered an
“environmentally sustainable activity”, and which criteria are used to
classify an economic activity as environmentally sustainable. The aim is to
classify economic activities EU-wide on the basis of defined requirements
with regard to their contribution to the six defined environmental
objectives (Article 9 of the EU taxonomy) and thus to support the European
Union’s transformation to a climate and environmentally friendly economy.
The six objectives are:
1.
Climate change mitigation
2.
Climate change adaptation
3.
The sustainable use and protection of water and marine resources
4.
The transition to a circular economy
5.
Pollution prevention and control
6.
The protection and restoration of biodiversity and ecosystems
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Article 3 of the EU taxonomy defines economic activities as
environmentally sustainable if they:
• contribute substantially to at least one of six environmental objectives
(Articles 10 to 16)
• do no significant harm to any of the other five environmental objectives
(Article 17)
• comply with minimum standards for occupational safety, human rights,
anti-corruption, fair competition, and taxation (Article 18)
• comply with technical screening criteria defined by the European
Commission.
Investments, revenues, and operating expenses are taxonomy-eligible if
they are in conjunction with activities that are described in principle in
Annexes I and II to the Delegated Act on environmental objectives and can
be assigned, regardless of whether the corresponding TSC for
environmentally sustainable activities are met.
Investments, revenues, and operating expenditures are taxonomy-aligned
if the corresponding taxonomy-eligible activities also meet all the criteria in
Article 3 of the EU Taxonomy.
The European Commission has defined taxonomy criteria for various
economic activities under which conditions these activities make a
substantial contribution to at least one of the environmental objectives
and, at the same time, do not significantly harm the achievement of the
EU’s five other environmental objectives. However, the criteria’s provisions,
formulations, and terms are still subject to uncertainties of interpretation.
Of all activities relevant to E.ON, the following activities are of particular
importance. By conducting them the Group makes a substantial
contribution to climate change mitigation and/or to the sustainable use and
protection of water and marine resources:
• Distribution of electricity
• Distribution networks for renewable and low-carbon gases
• Data-driven solutions for GHG emissions reductions
• Construction, extension and operation of water collection, treatment and
supply systems
• Installation, maintenance and repair of instruments and devices for
measuring, regulation and controlling energy performance of buildings
• Cogeneration of heat/cool and power from bioenergy
• Power generation by means of photovoltaic technology
• District-heating distribution
• Infrastructure for personal mobility
• Generation of heat/cooling from renewable non-fossil gaseous and liquid
fuels
E.ON reports on activities that already contribute to the environmental
objectives or are activities that enable climate protection or represent
transition activities.
E.ON’s taxonomy-eligible and taxonomy-aligned economic activities are
conducted predominantly at the Energy Networks, Energy Infrastructure
Solutions, and Energy Retail business divisions. E.ON is an energy
company, and thus, its activities in these business divisions are extensively
covered by the economic activities listed in the EU taxonomy.
The figures for taxonomy-relevant economic activities were determined
with reference to the FAQ documents published by the European
Commission to date, which address questions of interpretation regarding
Article 8 of the EU Taxonomy Regulation, and under application of the
amendments to the Delegated Act on disclosure of taxonomy requirements
published in 2023.
E.ON’s Approach
E.ON has had a regular process in place since 2021 to ensure the
appropriate assessment of all taxonomy requirements related to the EU’s
environmental objectives 1, “Climate change mitigation,” and 2, “Climate
change adaptation.” The approach also applies to the taxonomy
requirements to be considered for the first time in 2023 in relation to EU
environmental objectives 3 to 6 (“Sustainable use and protection of water
and marine resources,” “Transition to a circular economy,” “Pollution
prevention and control,” and “Protection and restoration of biodiversity and
ecosystems”). E.ON’s business activities are continually mapped to the
relevant taxonomy criteria. We consider revenues to be the main criterion;
that is, E.ON’s activities are allocated to the taxonomy’s economic activity
with which revenues are or are supposed to be generated. The analysis’s
findings show that economic activities 5.1 (environmental objective 1,
“Climate protection”) and 2.1 (environmental objective “Sustainable use
and protection of water and marine resources”) partially overlap. The next
step is an alignment check in which the mapping’s findings are analyzed
and checked in interviews, expert discussions, and workshops with the
relevant operational contacts and experts from the specialist departments
of the segments and business units as well as major Group companies to
determine whether corresponding taxonomy criteria for the economic
activities are actually met. The check’s findings are documented for any
taxonomy-eligible economic activities identified. This documentation is
collated in an EU taxonomy manual that is binding for all E.ON companies.
The companies use the manual’s specifications to determine the extent to
which their business activities actually meet the taxonomy’s technical
screening criteria and create suitable records for this purpose.
E.ON conducts the analysis of taxonomy-alignment in detail as follows:
Assessment of Substantial Contribution
Compliance with the technical screening criteria is generally assessed and
documented individually for each economic activity and at the companies
on a decentralized basis. If the criteria provide for simplifications that allow
compliance with the criteria to be assessed at the level of the entire
economic activity, an operating segment, or for the entire Group, E.ON
makes use of them.
Assessment of Doing No Significant Harm (“DNSH”)
The DNSH criteria mainly refer to compliance with legal requirements or, in
the case of the “circular economy” objective, to fundamental aspects of the
economic activity. DNSH conformity is therefore to be assessed at the level
of an economic activity on a regular basis. DNSH conformity regarding EU
environmental objective 2, “Climate change adaptation,” is identified and
assessed in E.ON’s established risk management process. For this purpose,
E.ON makes use of existing systems and processes for financial and non-
financial risk management, which it has expanded to include EU taxonomy
matters. Details can be found in the Risks and Chances Report.
Assessments of Minimum Safeguards
E.ON uses established processes and documentation at the Group level to
assess and comply with the minimum safeguards. The Group ensures that
the EU taxonomy’s requirements are fully met in this regard by means of
appropriate guidelines and related training and monitoring measures. E.ON
companies are required to implement such policies and guidelines in a
binding manner. Responsibility for compliance lies with the respective
companies.
Taxonomy-Aligned Economic Activities
The assessment included a review of all activities relevant for E.ON to
determine whether they make a substantial contribution to climate change
mitigation (and/or to the sustainable use and protection of water and
marine resources) and meet the criteria contained in Article 3 of the EU
taxonomy. The review identified the following economic activities, which
are assigned to environmental objective 1, Climate change mitigation, as
taxonomy-aligned on a proportional basis:
4.1
Electricity generation using solar photovoltaic technology
4.3
Electricity generation from wind power
4.5
Electricity generation from hydropower
4.9
Transmission and distribution of electricity
4.10
Electricity storage
4.14
Transmission and distribution networks for renewable and low-
carbon gases
4.15
District heating/cooling distribution
4.16
Installation and operation of electric heat pumps
4.19
Cogeneration of heating/cooling and power from renewable non-
fossil gaseous and liquid fuels
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E.ON Integrated Annual Report 2024
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4.20
Cogeneration of heating/cooling and power from bioenergy
4.21
Production of heating/cooling from solar thermal energy
4.22 Production of heat/cooling from geothermal energy
4.23
Production of heating/cooling from renewable non-fossil gaseous
and liquid fuels
4.24
Production of heating/cooling from bioenergy
4.25
Production of heat/cooling using waste heat
5.1
Construction, extension, and operation of water collection,
treatment, and supply systems (as well as 2.1 water supply, which
is an activity assigned to environmental objective 3)
6.13
Infrastructure for personal mobility, cycle logistics
6.15
Infrastructure enabling low-carbon road transport and public
transport
7.4
Installation, maintenance, and repair of charging stations for
electric vehicles in buildings
7.5
Installation, maintenance and repair of instruments and devices for
measuring, regulation and controlling energy performance of
buildings
7.6
Installation, maintenance, and repair of renewable energy
technologies
8.2
Data-driven solutions for GHG emissions reductions.
9.3
Professional services related to energy performance of buildings
E.ON identified no economic activities in 2024 that make a significant
contribution to environmental objective 2, “Climate change adaptation,” or
to environmental objectives 4 to 6. If economic activities make a significant
contribution to environmental objective 1, “Climate change mitigation,” as
well as to environmental objective 3, “The sustainable use and protection
of water and marine resources,” in line with our business model we assign
the significant contribution to climate change mitigation.
Substantial Contribution to Climate Change Mitigation
By definition, electricity generation from wind and solar as well as run-of-
river hydropower plants makes a substantial contribution to climate
change mitigation within the meaning of the taxonomy. No other criteria
for the assessment of their substantial contribution to climate protection
need to be assessed. The same applies to the installation of devices such as
solar panels, smart energy meters, and electric-vehicle charging stations in
buildings.
E.ON’s activities to establish infrastructure for personal eMobility meet the
required criteria for creating low-carbon road transport.
E.ON’s electricity networks make a substantial contribution to climate
change mitigation within the meaning of the taxonomy, since they are
downstream distribution networks, and thus part of the European
interconnected system.
E.ON operates a large number of heating networks. Some of these heating
networks are “efficient” within the meaning of the taxonomy’s criteria. This
means that they transmit at least 50 percent renewable heat, at least 50
percent waste heat, at least 75 percent CHP heat, or at least 50 percent of
a combination of these energy sources. Such heating networks thus make a
substantial contribution to climate protection.
In addition, E.ON operates water supply systems, the majority of which
make a substantial contribution to climate change mitigation because they
meet the energy-efficiency criterion (less than 0.5 kWh per meter3 of
water) and/or the leakage threshold of 1.5. For water supply systems that
do not meet these criteria, investments made in the financial year to
improve their energy efficiency and/or leakage rate by at least 20 percent
are classified as taxonomy-aligned investments. The significant
contribution to the sustainable use and protection of marine resources is
made through the operation of water supply systems that provide
consumers with high water quality and at the same time contribute to the
efficiency of water resources. These water supply systems revenues are
classified as taxonomy-aligned if the investments enabled them to meet
the aforementioned criteria for taxonomy-aligned water supply systems.
In the case of gas networks, in particular investments in existing
infrastructure that increase the possibility of blending hydrogen and other
low-carbon gases were classified as taxonomy-aligned. Pilot projects to
establish dedicated hydrogen infrastructure were also assessed to be
taxonomy-aligned. This also applies to investments and operating
expenses related to the detection and/or prevention of methane leaks.
E.ON operates a large number of CHP and heat generation plants.
Depending on the energy source used, there are various sets of criteria,
some of which are met by E.ON plants. Plants fueled solely by natural gas
will be classified as taxonomy-eligible under the new sets of criteria but are
not classified as taxonomy-aligned at present.
Investments in the development of broadband data infrastructure are
classified as taxonomy-aligned because the data and analyses provided by
them lead directly to the reduction of GHG emissions at E.ON or its
customers.
Do No Significant Harm
Protecting assets against the physical impacts of climate change (“Climate
change adaptation”) is economically relevant for E.ON and is therefore
factored into investment decisions. Climate-related risks and opportunities
are also recorded in E.ON’s risk management system. The Risks and
Chances Report contains more information.
The criteria for the EU’s environmental objective 3, “sustainable use and
protection of water and marine resources,” mainly refer to legal and
regulatory requirements in the energy sector. Compliance with these
requirements is a prerequisite for obtaining construction and operating
permits. The same applies in principle to the criteria for the EU’s
environmental objective 5, “pollution prevention and control.” Details can
be found in the Environmental Management chapter.
There are general criteria for the environmental objective 4, “transition to a
circular economy,” such as long durability, easy disassembly, or
reparability. Most components are designed for a very long lifespan, are
recyclable, and still have economic value at the end of their useful life (such
as steel, aluminum, and copper). Such components of assets can be
recycled within the E.ON Group or sold to third parties for further use.
With regard to the EU’s environmental objective 6, “protection and
restoration of biodiversity and ecosystems,” E.ON, where required,
conducts environmental impact assessments and comparable
assessments, which are a key prerequisite for obtaining permits to build
and operate assets. Furthermore, one of E.ON’s important ambitions is to
conduct ecological corridor management or to convert to this approach.
Compliance with the Minimum Safeguards
Our corporate responsibility includes ensuring respect for human rights in
all aspects of our own business as well as in our supply chain. E.ON takes
its responsibility seriously and is therefore committed to conducting its
business in accordance with compliance requirements. This includes
respecting human rights, protecting the environment, and ensuring
appropriate working conditions. To prevent human rights violations, E.ON
adheres to external standards and defines its own principles and policies.
E.ON’s Human Rights Policy Statement explicitly acknowledges the United
Nations’ International Bill of Human Rights and the International Labour
Organization’s Declaration on Fundamental Principles and Rights at Work
and the latter’s fundamental conventions. The statement also makes
reference to E.ON’s own policies, such as the Supplier Code of Conduct and
the Code of Conduct for employees. The standards for human rights, work
conditions, environmental protection, and compliant business practices
that E.ON requires its suppliers to meet are defined in the Supplier Code of
Conduct.
Conducting a periodic risk assessment serves to indicate potential threats.
E.ON promotes compliance with its standards and minimize potential
threats by means of numerous measures and processes. The principle
focus of these activities at E.ON’s own business is on occupational safety
and fair work conditions. The respective chapters contain additional
information about ensuring a responsible supply chain as well as
compliance and anti-corruption.
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E.ON Integrated Annual Report 2024
54
EU Taxonomy Key Figures
E.ON’s reporting applies the indicators defined in Article 8 of the Taxonomy
Regulation: taxonomy-eligible and taxonomy-aligned investments,
revenues, and operating expenses. All business activities identified at E.ON
are assigned to precisely one of the EU taxonomy’s economic activities in
order to prevent double counting, except in cases where the taxonomy
requires business activities to be assigned to multiple environmental
objectives (see information on double counting according to Annex II of the
Amended Delegated Act on the disclosure of taxonomy requirements in the
table “Taxonomy eligibility and alignment per environmental objective” in
the Appendix to the Sustainability Statement).
E.ON reports the following three indicators for investments, revenues, and
operating expenses:
1.
Taxonomy-eligible activities as a ratio of the total amount shown in
the E.ON Group’s Consolidated Financial Statements prepared
according to IFRS
2.
Taxonomy-aligned activities as a ratio of the total amount shown in
the E.ON Group’s Consolidated Financial Statements prepared
according to IFRS
3.
Taxonomy-aligned activities as a ratio of taxonomy-eligible activities
Investments
Investments were calculated on a gross basis; that is, without taking into
account revaluations or depreciation and amortization or impairment
charges. They consist of investments in non-current tangible and
intangible assets (fixed assets), including assets acquired in asset deals
(recorded directly) and share deals (investment amount determined by the
purchase-price allocation). More specifically:
• Property, plant, and equipment pursuant to IAS 16.73 (e) (i) and (iii)
• Intangible assets pursuant to IAS 38.118 (e) (i)
• Investment property pursuant to IAS 40.76 (a) and (b), IAS 40.79 (d) (i)
and (ii)
• Agriculture pursuant to IAS 41.50 (b) and (e)
• Leasing pursuant to IFRS 16.53 (h)
Group investments (denominator) consist of additions to fixed assets plus
additions to property, plant, and equipment, and intangible assets from
business combinations, which are shown in Note 14 to the Consolidated
Financial Statements. The numerator is equal to, respectively, taxonomy-
eligible, or taxonomy-aligned proportion of Group investments.
Of E.ON’s taxonomy-eligible investments, property, plant, and equipment
accounted for €6,023 million, intangible assets for € 428 million, and right-
of-use assets for €300 million. The numerator for taxonomy-eligible
investments consists of the following:
Composition of the investments nominator
in Mio €
Economic
activity 4.9
Other
economic
activities
Total
Property, plant and
equipment
4,702
1,155
5,857
Intangible assets
284
144
428
Investment properties
-
-
-
Right-of-use assets
253
45
298
E.ON Group
5,239
1,344
6,583
In accordance with the taxonomy’s specifications, E.ON also includes non-
cash-effective investments, but not additions to financial assets. The
taxonomy’s definition of investments differs from E.ON’s internal
performance indicator for investments, namely cash-effective
investments. E.ON therefore reconciles total investments pursuant to the
taxonomy to the investments disclosed in the “Financial Situation” section
of the Business Report:
At E.ON, all investments in the 2024 financial year fall under category a) of
the Annex to the Taxonomy Regulation. An investment plan according to
category b) or investments according to category c) do not exist at E.ON.
Revenues
Revenues correspond to net sales excluding electricity and energy taxes as
shown in the Consolidated Income Statements of the Integrated Annual
Report. These figures are included in the denominator, whereas the
corresponding taxonomy-eligible and/or -aligned revenues are shown in
the numerator.
Operating Expenses
The denominator for operating expenses is to be specified in accordance
with the taxonomy requirements. Ecologically sustainable operating
expenses are to include individually attributable, non-capitalized expenses
for research and development, building renovations, short-term leasing,
maintenance and repairs, other direct expenses in connection with the
maintenance of assets, and other expenses necessary for the maintenance
of ecologically sustainable economic activities. At E.ON, this mainly
includes expenditures for repair and maintenance performed by third
parties, which are reported under cost of materials and other operating
expenses. The numerator reflects, respectively, the taxonomy-eligible or
taxonomy-aligned proportion of operating expenses.
Below we report on Group-wide EU taxonomy investments, operating
expenses, and revenue. Details on the EU taxonomy key figures by
economic activity are presented in detail under "EU Taxonomy Key Figures
and Templates” in the Appendix to the Sustainability Statement.
Investments
In the 2024 financial year, 82 percent of the E.ON Group’s investments
were within the scope of the EU taxonomy (taxonomy-eligible). Taxonomy-
aligned activities accounted for 98 percent of taxonomy-eligible
investments.
The Energy Networks business division made a significant contribution.
About 90 percent of its investments were taxonomy-eligible; nearly all of
them were taxonomy-aligned. At roughly €5.2 billion, the largest
contribution came from E.ON’s electricity distribution networks, which are
part of the European interconnected system. They continually integrate
renewable generating facilities, thereby propelling the energy transition in
Europe and connecting customers to sustainable energy. E.ON again
invested again significantly more in taxonomy-aligned electricity networks
compared with the previous year. This trend is supported by the
digitalization of E.ON’s networks through the expansion of fiber-optics and
broad-band technology. E.ON invested €295 million in this area in the year
under review.
In addition, €347 million of investments in gas networks were taxonomy-
aligned and thus slightly decreased relative to the prior year. In Germany in
particular, these investments serve to establish and expand hydrogen
infrastructure or enable hydrogen to be admixed to E.ON’s existing gas
networks. €97 million of the investments in our water supply networks
were taxonomy-aligned and thus also higher than in the previous year.
The Energy Infrastructure Solution business division’s taxonomy-aligned
investments totaled €0.5 billion. Its businesses that install, maintain, and
devices for measuring, regulating, and controlling buildings’ overall energy
efficiency represented its main contributor to the EU taxonomy. The
expansion of its assets for district heating distribution as well as its energy-
infrastructure business, which encompasses biofuel-fired electricity and
heat cogeneration, as well as investments in plants for heat production
with combined feedstocks are likewise covered by the taxonomy. E.ON’s
Reconciliation to Cash-effective Investments
€ in millions
Q1–Q4 2024
EU taxonomy: total investments
8,260
./. Right-of-use assets
-741
./. Non-cash-effective investments
-311
+ Cash-effective financial investments
528
./. Investment subsidies
-237
Cash-effective investments
7,499
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E.ON Integrated Annual Report 2024
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distributed solar generating facilities as well as the installation and
operation of electric heat pumps contributed additional amounts.
The procurement and sale of power and gas are not covered by the
taxonomy. The Energy Retail business division’s focus on the sale of power
and gas to end-customers means that it has no significant assets and
therefore has comparatively few investments covered by the EU
taxonomy. Corporate Functions/Other’s investments did fall within the EU
taxonomy’s scope.
Overall, the proportion of the respective taxonomy-aligned as well as
taxonomy-eligible investments by economic activity are at the prior-year
level, whereas investments in absolute terms—and thus also taxonomy-
aligned and taxonomy-eligible investments in absolute terms—rose relative
to 2023.
E.ON’s Green Bond Framework—a framework for debt instruments whose
issue proceeds are used to finance sustainable investment projects—has
been aligned with the EU taxonomy, among other things, since 2021. The
Sustainable Finance chapter contains detailed information. The green
bonds E.ON issued in 2024 financed 54 percent of its taxonomy-aligned
investment expenditures in that year.
Operating Expenses
In the 2024 financial year, E.ON had around €1.4 billion in operating
expenses that meet the definitions of the EU taxonomy. €476 million of
these expenses were not taxonomy-eligible, and €940 million were
taxonomy-aligned. This corresponds to around 97 percent of taxonomy-
eligible expenses.
As with investments, the majority of aligned expenses resulted, as in the
prior year, from maintenance activities for E.ON’s electricity network
(€807 million). Smaller amounts related to gas distribution networks,
particularly to prevent or reduce methane leaks (€27 million).
Energy Infrastructure Solutions’ business with decentralized electricity
and/or heat/cooling generation plants accounted for around €20 million.
€18 million was related to the installation and maintenance of renewable
technologies at the Energy Infrastructure Solutions division.
The proportion of the respective taxonomy-aligned as well as taxonomy-
eligible operating expenses by economic activity are therefore at the prior-
year level.
Revenues
As in the prior year, in 2024 the Energy Retail business division again
generated the majority of E.ON’s external sales. However, revenues from
the sale of electricity and gas to end-customers are not covered by the EU
taxonomy. As expected, therefore, only 27 percent of external sales were
taxonomy-eligible.
Nearly all taxonomy-eligible revenues were also taxonomy-aligned, of
which the vast majority— €19.8 billion—related to electricity transmission
fees in E.ON’s distribution networks. E.ON reports €15.3 billion as
taxonomy-aligned external revenues in the Energy Networks business
division and €4.5 billion in the Energy Retail business division from sales
revenues for network charges insofar as these were attributable to E.ON’s
own distribution network territory.
The Energy Retail and Energy Infrastructure Solutions business divisions in
particular generated additional taxonomy-aligned revenues of around €0.6
billion relating, as in the prior year, to the energy efficiency of buildings and
renewable energy technologies, such as the installation, maintenance, and
repair of photovoltaic systems, heat pumps, and solar-powered systems
for water heating.
Our energy infrastructure business, which generates decentralized
electricity and/or heat/cooling from a variety of sources as well as our
district heating distribution generated around €0.2 billion in aligned
revenues.
The proportions of the respective taxonomy-aligned as well as taxonomy-
eligible revenues by economic activity are therefore at the prior-year level.
Regarding ESRS 2 SBM-1 para. 40d i. reporting requirements, E.ON’s
business activities relating to gas distribution networks and gas sales
generated total revenues of around €19.9 billion in 2024 (see also Note 34
to the Consolidated Financial Statements). E.ON does not report
taxonomy-aligned revenues from fossil gas. "EU Taxonomy Key Figures
and Templates” in the Appendix to the Sustainability Statement contains
additional information.
Employees and Society
Occupational Health and Safety [+]
E.ON works continually to establish a caring culture. This encompasses
ensuring our employees’ safety in the workplace, promoting their health,
and also supporting their mental well-being. Many of our employees as
well as contractor employees perform high-risk work, such as on energy
networks, gas pipelines, and other industrial facilities. There is a risk of
electric shocks, falls, and other occupational risks that can lead to serious
injuries and health problems. However, effects on health and occupational
safety can also occur in less risky business areas. Stringent safety
standards are therefore of particular importance to E.ON, because
employees’ health is E.ON’s top priority.
E.ON’s Approach
Health and safety (“H&S”) have long been firmly embedded in E.ON’s
Group-wide corporate culture and its organizational setup, policies, and
procedures. E.ON’s approach is proactive and preventive.
We are unambiguously committed to the principle of zero tolerance of
accidents. E.ON’s main objective is to prevent occupational accidents from
the outset. This applies to E.ON employees as well as contractor
employees who work on its behalf.
E.ON’s ambition is to extensively promote employees’ well-being and
enable them to maintain their performance and employability. In particular,
we try to prevent those health conditions that most frequently result in
incapacity for work. E.ON’s health management includes and providing
health services (such as flu vaccinations) as well as target-group-specific
individual measures to maintain health. It typically encompasses issues
that are relevant for all employees or for certain target groups. Issues
include general health maintenance, nutrition, exercise, mental health,
stress management, and addiction prevention. E.ON promotes them by
means of training sessions, information leaflets, presentations, and digital
formats.
E.ON is aware of the safety risks associated with electricity and gas. We
therefore inform the public about the dangers that can arise when handling
electricity and gas. Examples include flyers, safety instructions,
information on websites, and articles in trade journals. In addition, E.ON
provides videos and a variety of teaching materials to schools to highlight
the dangers of electricity. We also cooperate with local fire departments
and technical aid organizations to train them in handling electrical systems
in particular. Support is also provided for crisis exercises.
Guidelines and Policies
E.ON is committed to a Group-wide culture of prevention. We reaffirmed
this in 2009 by signing the Düsseldorf Statement on the Seoul Declaration
on Safety and Health at Work as well as the Luxembourg Declaration on
Workplace Health Promotion.
E.ON’s Human Rights Statement unambiguously acknowledges the
International Bill of Human Rights and the Declaration on Fundamental
Principles and Rights at Work of the International Labour Organization
(“ILO”) of the United Nations (“UN”) and its fundamental conventions. It
also refers to E.ON’s own guidelines and policies, which are the
responsibility of the individual departments and support the
implementation of suitable preventive measures, including the H&S
division. The “Guidelines and Policies” section of the Human Rights and
Supplier Management chapter describes additional content of our Human
Rights Statement and provides an overview of our risks the measures we
take to address them.
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E.ON Integrated Annual Report 2024
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Many of the policies and guidelines described here—such as the Human
Rights Statement and the E.ON Health, Safety, Environment & Climate
Protection Policy Statement—are signed jointly by the Management Board
and the Group Works Council.
E.ON has had a Group Company Agreement on Health for all employees in
Germany since 2015; it was last revised in 2018. Its purpose is to foster a
healthy work environment and promote the health of all employees. It
defines four action areas: occupational health management, addiction
prevention and intervention, occupational integration management, and
employee counseling.
The E.ON Health, Safety, Environment & Climate Protection Policy
Statement, which was originally published in 2018, was updated in 2021
to reflect E.ON’s Vision Zero for safety targets as well as its climate and
environmental targets in the context of the EU taxonomy. In addition, we
simplified the document’s language and eliminated redundancies.
A Group-wide standard for managing risks to health, safety, and the
environment (“HSE”) has applied in the Company since the start of 2021. It
defines the minimum requirements for identifying, analyzing, evaluating,
managing, and monitoring HSE and other sustainability-related dangers
and opportunities. The standards’ requirements are also supported by IT
solutions, which are mainly used to create risk assessments and/or indices
as well as activity-related danger evaluations. Our employees have the
opportunity to view danger evaluations relevant to them and the resulting
protection measures.
The Group HSE Function Policy defines roles, responsibilities, management
expectations, and reporting channels in E.ON’s H&S organization. It sets
minimum requirements and defines management tools needed to prevent
physical and mental harm in the workplace. It also requires all our
operating units (except for very small ones and those with insignificant
risks and potential impact) to have in place an occupational H&S
management system certified to international standards—such as ISO
45001 (which replaced OHSAS 18001)—and to improve the system on an
ongoing basis.
At year-end 2024, 99 percent of our employees worked at a company with
an H&S management system. 80 percent of our employees work at
business units certified to ISO 45001.
E.ON refined the Group HSE Function Policy in 2022. For example, we
added or sharpened the definition of tasks and task areas and formulations,
in part to better integrate sustainability aspects Group-wide, including task
areas such as the environment and biodiversity, sustainability reporting,
and supply chain.
In addition, the People Guideline on HSE communicates E.ON’s H&S
aspirations and states the expectation that all employees embrace H&S on
the job. It also describes E.ON’s Safety F1RST principles for the safety
mindset and behaviors necessary to prevent accidents. The guideline
contains extra tasks for managers because their responsibilities include
leading by example with regard to H&S.
The Group Standard for Incident Management, which applies to E.ON
contractors as well, establishes consistent rules for classifying,
investigating, analyzing, and reporting H&S incidents and for sharing
information. It complements PRISMA (Platform for Reporting on Incident
and Sustainability Management and Audits), E.ON’s IT solution for incident
management, which is described below under “Specific Actions.”
The Group Standard on H&S Management Expectations, which took effect
in 2022, defines expectations for 15 core elements. It addresses
occupational safety and accident prevention as well as the safety of E.ON’s
technical facilities, products, and services over their entire life cycle, H&S in
project management. The Data Protection, Cybersecurity, and Product
Safety chapter contains more information about product safety. This
standard provides the foundation for all cascading H&S rules and
processes at E.ON, thereby supplementing the requirements of the
relevant standards (including VDE, DVGW, DIN, and ISO). E.ON developed
an Expectations Maturity Assessment Tool (“EMAT”) to simplify
implementation and assess the status of management systems and rolled
it out beginning in April 2023. The tool is a specification of the
aforementioned Group Standard on H&S Management Expectations
adopted in 2022. In addition, we opened and/or migrated two IT portals to
support H&S E compliance processes: Red-on-line (formerly known as
Gutwin) for managing E.ON’s legal obligations and eNorm for managing
obligations from norms that E.ON must apply (such as Paragraph 49 of
Germany’s Energy Industry Act) and/or would like to apply (including, for
example, ISO 45001 and ISO 50001).
In addition, the H&S division works closely with the Human Rights Center
of Expertise and Group Compliance with regard to Germany’s Supply Chain
Due Diligence Act to monitor compliance with procurement policies and
standards and to ensure adherence to E.ON’s minimum standards for H&S.
This collaboration likewise resulted in additional H&S issues being
embedded in procurement processes, such as dealing with smaller
suppliers. Harmonized minimum H&S requirements for contractors now
apply at all E.ON companies in Germany; these requirements may be
supplemented by additional requirements depending on the services the
companies procure. The implementation of a Group-wide standard for
contractor management continues at E.ON companies, and their processes
for contractor management are being adjusted accordingly. This new
standard defines minimum requirements and roles and responsibilities to
ensure the consistent management and evaluation of H&S issues and risks
in the collaboration with contractors. They are supported by a catalogue of
contractor management measures, which also serves as an assessment
tool for the implementation of the standard.
More than 50 E.ON companies in Germany are now certified to ISO 45001
(occupational safety), ISO 14001 (environmental protection), and ISO
50001 (energy management) by means of a multisite process called E.ON
Matrix Certification. Most of these companies are network companies and
their subsidiaries, sales companies, and companies that offer integrated
energy infrastructure solutions. This is another step to manage these
companies in terms of occupational health and safety and environmental
protection, to leverage synergies, and to harmonize processes.
Organization and Responsibilities
E.ON is committed to protecting people and the environment. Because the
approaches and systems for both are similar, H&S functions in E.ON’s
business units are combined with environmental management in a single
HSE organization. Due to the importance of H&S, the department reports
directly to the Chairman of the Management. At the Group level (E.ON
headquarters), the Environment function was reassigned the Sustainability
department. The E.ON Management Board and the management of our
organizational units are responsible for E.ON’s H&S performance, which
includes complying with and optimizing Group standards. They set
strategic targets and update policies to foster continuous improvement.
They are supported and advised by the H&S department at Corporate
Functions and the E.ON H&S Council. The council is composed of senior
executives from different business areas and countries in which E.ON is
active. It meets at least two times a year and is chaired by the member of
the E.ON Management Board responsible for H&S. E.ON units also have
committees similar to the H&S Council and expert teams that likewise
meet multiple times a year. They define the H&S requirements for their
unit and plans to implement them. Every unit must ensure that it meets
E.ON’s corporate and H&S standards, designs and implements H&S plans
according to local needs, and integrates and implements E.ON’s H&S
Strategy Roadmap for 2024–2026. To ensure this, over 400 employees in
the E.ON Group work on HSE issues. Internal audits, annual meetings, and
self-assessments are some of the ways we make sure the units implement
the standards. In addition, works councils, the Group Works Council, the
Group Works Council’s HSE Committee, the E.ON Supervisory Board’s
Audit and Risk Committee, and the Supervisory Board itself are regularly
informed about H&S issues and involved in projects.
E.ON’s International Health Experts team intensified its collaboration to
foster health-related improvements and innovations and thus E.ON’s
health strategy. Since 2022 the team has again been sharing knowledge
and experience between countries to identify and leverage collaboration
synergies.
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E.ON Integrated Annual Report 2024
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Specific Actions
The H&S department oversees strategic H&S training sessions. This
includes the training provided to the E.ON Group’s top 100 executives,
programs for senior managers in the operating business, and training for
staff who conduct incident investigations (such as root-cause analysis).
With regard to the Group H&S Strategy Roadmap, E.ON’s units conduct
their own operational H&S training, programs to enhance H&S culture, and
training required by law that recurs annually or is conducted on an ad hoc
basis.
E.ON managers in Germany can enroll in Healthy Leadership, a training
module on how to address health issues and thereby promote health in
their team. This training continued to be conducted digitally in 2024 and
covered issues such as psychological security in teams, stress reduction,
mental health, and tips for an ergonomic workplace. E.ON employees in
Germany had free access to online ergonomics advisors, including for their
home office.
We conducted a health management inventory in 2023/2024 at a large
number of our companies in Germany and elsewhere in line with E.ON's
H&S vision. The purpose is to further advance our health strategy, address
challenges, and improve Group-wide transparency on health and well-
being. We used the inventory’s findings to identify action areas and define
specific future measures for them. The first specific measure, for example,
was to expand our mental health offerings Group-wide by introducing
mental health first aid (“MHFA”) training. The training is part of our
learning inventory and is available throughout the year.
MHFA training aims to identify mental health problems at an early stage,
understand them, and respond appropriately. The 12-hour course provides
knowledge about various mental disorders, such as depression, anxiety
disorders, addiction, and suicidal tendencies. It also shows how to
recognize warning signs, how to communicate with those affected, and
how to offer them support and help. MHFA’s aim is to reduce the stigma of
mental illness, promote mental health awareness, and alert those affected
to help options. Rollout took place at E.ON companies in Germany in the
summer of 2024 and continued at companies in other countries beginning
in the fall.
In addition, workshops for a common understanding of E.ON’s caring
culture were held for the top 100 executives and senior managers from
operations and administration. The workshops’ contents were adapted
using the findings of a needs analysis (an employee survey and in-depth
interviews with senior management).
Training content given a sharper focus included psychological safety,
communications, and appreciation. This was accompanied by an
ambassador campaign in which selected top 100 personalities describe
what caring culture means for their area of responsibility.
E.ON considers itself a learning company whose ambition is continuous
improvement. This includes a constructive culture of failure as well. We
thoroughly investigate incidents by conducting root-cause analyses
(“RCA”). For this purpose, E.ON has introduced a specific Group standard
and, in 2024, further expanded internationally the related training and
continuing skills development offerings. The training courses on offer cover
topics such as investigation methods and communication and, since 2024,
a train-the-trainer program for employees outside Germany, in particular
to train and manage RCA experts. Lessons learned from incident
investigations are shared throughout the Group and are incorporated into
the units’ activities and into working groups. E.ON also uses the lessons
learned to institute preventive measures. In 2024, for example, our
network business made the use of electric field sensors (such as voltectors)
for open, air-insulated, medium-voltage switchgear. These devices warn
when approaching open medium-voltage switchgear could be life-
threatening.
PRISMA, an integrated IT solution, is the main component of E.ON’s online
H&S incident management system and is used by all E.ON units. It enables
us to reach many users, report and manage data, and ensure a high degree
of transparency. Incident investigations are entered and stored directly in
PRISMA, ensuring that all companies and Corporate Functions always
work with the same database. Incident reporting is prompt, and the
situation should be clear for everyone involved. All this is intended to help
prevent incidents. E.ON has five categories of incidents. They range from 0
(low) to 4 (major). E.ON’s H&S Standard on Incident Management requires
the units to use PRISMA to report category 4 incidents to the H&S
department at Corporate Functions within 24 hours; in addition, the units
immediately forward the information to the Management Board.
Employees must report all incidents, regardless of their severity, using
PRISMA. No employee needs to fear any disadvantages. In addition, their
personal data are always protected and can only be accessed by limited
user groups. E.ON analyses all incidents. If employees or contractors who
find themselves in a situation that they believe is potentially dangerous,
they have clear instructions to suspend work immediately and, if
necessary, leave the work area. They are also instructed to alert their
colleagues to potentially dangerous situations.
We reviewed the specifications of our existing standard in early 2024 and
set the goal of dramatically reducing the duration of incident investigations
by 75 percent to a maximum of four weeks. Another goal was to make
more efficient use of insights, improve follow-up, and to use AI support to
become as digital as possible. All processes were reviewed for efficiency
and benefits. Alongside adjustments to content, the main levers for
reducing time are the commitment of everyone involved, clear guidelines,
and monitoring. Content changes included revising the list of causes using
the systematic cause analysis technique (SCAT) and adding the human
factor. A new process was set up in PRISMA to improve the tracking of
findings. Finally, the definitions of potential incidents were adjusted so that
in the future E.ON will focus more on accidents that could have ended
much more seriously due to inadequate measures
E.ON’s managers fulfil their responsibility as health and safety leaders in
part by going on safety walks and engaging in dialogue with employees.
During management visits, known as gemba walks, they can take a close
look at workplaces, talk directly with employees, and deepen their
understanding of H&S issues, including risks.
The digitalization of H&S processes continued in the 2024 reporting year.
We simplified PRISMA, our H&S data system, and improved its user-
friendliness. In addition, innovation gained momentum with the use of AI in
the first proof of concepts for analyzing H&S data. E.ON intends to use
these improved analyses to proactively avoid incidents in the future. The
Group-wide H&S app added or simplified functionalities, such as
conducting inspections, reporting near misses, and automatically initiating
the rescue chain in the event of incidents at E.ON’s (main) facilities. All
these functions aim to provide our employees with simple tools for daily
H&S processes in order to improve our overall H&S performance.
The HSE organization has conducted quick checks since August 2021.
They involve an outside partner rating E.ON’s safety culture on the Bradley
Curve and identifying and minimizing risks. By year-end 2023r, 21 quick
checks had been conducted at our operating units. In 2024 the task of
continuing the quick checks and reviewing the findings from the first round
of checks was put out to tender and awarded. The program began in the
second half of 2024. Six operating units were assessed in 2024, with a
total of 25 units to be assessed by the end of 2025. In addition to the quick
checks through year-end 2023, all administrative employees will also be
involved from 2024 onward, as will E.ON SE Group headquarters
E.ON runs an H&S Community that extends across all regions and
segments. It helps us be a learning company and serves in particular to
share knowledge and experience. The community meets regularly and, as
needed, in special expert groups. Experts work together to achieve
improvements in key areas like incident prevention. The topics in 2024
included working in danger zones and cutting cables, H&S in the
installation business as well as H&S in the networks business.
Uniform life-saving rules were introduced across the Group at the start of
2024. The rules are intended to raised awareness of the main risks faced
by employees. Accident analyses show that many incidents are related to
deviations from the rules. To counteract this, a Group-wide project is
currently being carried out to deal with safety regulations.
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Employees and managers who have questions or concerns about their
physical or mental health can contact the Employee Assistance Program
(“EAP”). The EAP is a free health-advisory and life-coaching service
available in multiple languages to E.ON staff in Germany, the United
Kingdom, Sweden, Italy, the Czech Republic, Slovakia, and Hungary. We
have similar programs in other countries where we operate. Alongside the
EAP, E.ON offers employees and managers one-on-one psycho-social
counseling.
In addition, employees and people outside E.ON can use our whistleblower
hotline to report potential violations of regulations and laws relating to
occupational safety. The “Targets and Performance Review” section of the
Human Rights and Supplier Management chapter provides additional
information about the whistleblower hotline.
There are also supplementary functions and roles at E.ON, including social,
addiction, and health counseling. Across the Company, these functions and
roles are performed by employees alongside their regular duties. These
employees are obliged to maintain confidentiality.
E.ON employees can also take advantage of specific preventive measures
(for example, nutrition counseling and colon cancer screening), consult
company physicians, and take advantage of EAP benefits as well as use
company fitness facilities.
If E.ON employees are seriously or fatally injured, insurance policies
provide initial coverage for ensuring recovery or supporting the bereaved.
Unit-specific, individual measures may also be taken. For example, E.ON
supports the transport of injured colleagues to other hospitals if necessary
to ensure the best possible care. Another example is the provision of a
savings fund to ensure the education of a deceased employee’s children.
Gradual reintegration into the workplace is possible after a long illness-
related absence.
Goals and Performance Review
The E.ON Management Board is informed about category 3 and 4
incidents, developments relating to accidents, and related measures and
programs by means of monthly reports from H&S and regular
consultations with the Senior Vice President Group H&S. The units report
fatal and life-threatening incidents directly to the Management Board
within 24 hours.
Health and safety concerns have always been a high priority for the E.ON
Management Board. For example, it comprehensively revised E.ON’s H&S
strategy. E.ON did not set any quantitative targets. Nonetheless, the
Management Board will review the strategy’s effectiveness in discussions
as well as its impact on H&S key performance indicators. Quantitative
targets will be introduced in 2025. For the purposes of the H&S strategy,
the Management Board consulted with (business) stakeholders and H&S
managers to discuss and analyze in detail the business’s challenges and
drivers and the resulting core topics for the new 2024-2026 roadmap. The
strategy was derived from this and endorsed by the H&S Council at the
beginning of 2024 for implementation in the units and in Group H&S from
2024 onward. The H&S strategy whose aim is to position E.ON as a leading
H&S company. The strategy contains underlying targets for the operating
units, including H&S, and their respective board members. In addition, the
Management Board set personal H&S targets for top executives. The
targets for top executives and units are individual. Their purpose is to
further reduce the frequency of serious incidents and fatalities (“SIF”) so
that in the long term serious incidents and fatalities no longer occur. The
primary focus in 2024 was on contractor management, digitalization, the
optimization of incident management. In addition, a task force was initiated
to achieve visible results even faster in technical safety, contractor safety,
and manager and employee engagement in E.ON’s H&S leadership
ambitions, and to prevent serious accidents. In addition, a review program
called DSS Quick Checks was used to design additional (in some cases
company-specific) measures to improve H&S processes that began to be
implemented in 2024.
E.ON conducts thorough incident analyses to understand causes, take
measures to prevent them, and identify risks. If accident data indicate that
a unit does not meet E.ON standards, the H&S department supports it in
optimization. In addition, Group Audit may conduct an H&S audit at the
unit.
The findings of the incident investigations and H&S audits completed in
2024 show that H&S management systems are largely effective. The units
have adopted the auditors’ resulting recommendations and have generally
used them to design corrective and preventive actions. It also became
clear, however, that employees’ safety awareness was not fully adequate
in all teams. It therefore remains extremely important to continually point
out to E.ON employees and contractor employees all the requirements of
H&S management and their own responsibility: they must look after
themselves and their colleagues and speak up immediately if they detect a
potential safety risk. Overall, E.ON has observed for several years that
occupational safety in its units is improving continually.
The extent to which E.ON’s health strategy is successful depends in part on
whether employees receive information about health and prevention and
whether this motivates them to participate in related programs. To
increase willingness to participate, health programs are often tailored to
the needs of specific target groups. E.ON’s network operators in Germany,
for example, target their employees aged 50 and over in particular as well
as employees in their field offices. Actions include workshops on healthy
living in older age and preparing for retirement. There are also special
offers, for example, for operational employees such as fitters and
administrative staff. The return on investment (“ROI”) of many health
programs is calculated by comparing costs with avoided absenteeism
based on research and statistics. So that all employees feel comfortable,
valued, and supported in their work environment, E.ON places particular
emphasis on mental health. We provide information on the importance of
stress management and show how to recognize signs of mental health
issues. In addition, E.ON has assistance and training on stress reduction,
self-assessment tests, and a direct support offering, including through the
EAP.
Progress and Measures
Accident Statistics
The reporting below on accident statistics distinguishes between
employees and contractors, who together represent our own workforce
within the meaning of the ESRS. We consider E.ON’s employees to be on-
staff personnel and contractors to be non-staff personnel.
E.ON uses serious incidents and fatalities (“SIF”) to measure accidents and
incidents that caused serious or fatal injuries and that surpass a predefined
severity threshold. Just as in the prior, employee SIF was 0.03.
Lost-time injury frequency (“LTIF”) measures work-related accidents
resulting in lost time per million hours of work. Employee LTIF was
2.46 (2023: 2.17).
Total recordable injury frequency (“TRIF”) is one of E.ON’s KPIs for safety.
It measures the number of recorded work-related injuries and (acute)
injuries per million hours of work. E.ON has calculated it since 2010
(employee TRIF) and included contractor employees in its safety
performance since 2011 (combined TRIF). Employee TRIF was 3.24 in
2024 (2023:2.77).
► All accidents were carefully examined, both individually and in
comparison. In some cases, this enabled us to identify patterns or multiple
predominant causes and respond directly to them, for example, by means
of work groups. TRIF increased mainly because of the greater frequency of
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E.ON Integrated Annual Report 2024
59
accidents during routine work or activities with a low risk potential. Many
of these accidents involved cut/puncture injuries as well as tripping,
slipping, and falling accidents that generally result in brief lost time. ◄
H&S Key figures1
2024
2023
SIF2 Employee
0.03 [+]
0.03 [+]
SIF2 Contractor
0.12 [•]
0.06 [x]
SIF2 combined
0.07 [•]
0.04 [x]
LTIF3 Employee
2.46 [+]
2.17 [+]
LTIF3 Contractor
1.76 [•]
1.62 [x]
LTIF3 combined
2.14 [•]
1.90 [x]
TRIF4 Employee
3.24 [+]
2.77 [+]
TRIF4 Contractor
2.08 [•]
1.98 [x]
TRIF4 combined
2.71 [•]
2.40 [x]
NMFR5 Employee
36.57 [•]
40.32 [•]
1Working hours (denominator) based on actual hours recorded and extrapolation for employee
figures, extrapolation based on the order volume of contractors for contractor figures.
2Serious incidents and fatalities measures accidents and incidents per million hours of work that
have caused serious or fatal injuries and that surpass a predefined severity threshold per million
hours of work.
3Lost-time injury frequency measures work-related accidents resulting in lost time per million hours
of work.
4TRIF measures the number of reported fatalities and occupational injuries and also includes injuries
that occur during work-related travel that result in lost time or no lost time and/or that lead to
medical treatment, restricted work, or work at a substitute work station.
5Near-miss frequency rate measures unplanned incidents that had the potential to result in an
accident (but did not) per million hours of work.
► The number of work-related injuries among employees (TRI) amounted
to 443 in 2024. E.ON does not have comprehensive data on employees’
work-related illnesses. An in-house survey and a survey conducted by
deutsche Berufsgenossenschaft, an accident insurer, show that we are
aware of 47 work-related illnesses in 2024. We are not aware of any
fatalities due to work-related illnesses.
Near-miss frequency rate (“NMFR”) measures unplanned incidents that
had the potential to result in an accident (but did not) per million hours of
work. E.ON analyzes how and why near misses happened and then puts in
place controls to minimize or completely eliminate similar risks in the
future. We actively encourage employees to report near misses so that we
can continually improve our safety performance. E.ON’s NMFR was 36.57
in 2024 (2023: 40.32). ◄
Fatal Accidents at Work
Regrettably, one employee died in 2024 due to an occupational accident.
The employee suffered a fatal electric shock while rectifying a fault .Each
fatal accident is thoroughly investigated so that we understand the exact
course of events that led to it. Identifying root causes enables us to take
the measures necessary to prevent similar accidents in future.
Nevertheless, serious and even fatal accidents still occur. E.ON cannot and
will not accept this. It has therefore further intensified its efforts to prevent
accidents. Examples include the Group-wide introduction of life-saving
rules and the mandator use of electric field sensors. No contractor
employees had no fatal accidents.
Occupational Health and Safety at PreussenElektra
E.ON’s subsidiary PreussenElektra (“PEL”) is responsible for the operation,
decommissioning, and dismantling of the Company’s nuclear power plants
(“NPPs”). Its top priorities in all these activities are the health and safety of
employees—its own as well as contractors’—and environmental protection.
PEL is fully integrated into E.ON’s safety organization and is subject to its
high standards. PEL’s extensive experience in plant operations and
decommissioning helps it continually optimize its H&S processes and
procedures and thus to minimize possible risks in conducting its activities.
Special focus actions, practical training sessions, and health promotion
measures foster and support the safe behavior of PEL and contractor
employees. Together, the systematic application of safety standards, the
conducting of various training and awareness-raising measures (including
for contractors), and continual H&S advice directly at the work site again
helped prevent serious accidents in 2024.
Working Conditions and Employee Development [•]
We take responsibility for helping shape a green, digital, and decentralized
energy world in Europe, and our strategic focus on growth, sustainability,
and digitalization sets clear priorities. Our HR activities form an important
basis for this strategy’s successful implementation. We have defined
overarching action areas for HR management that reflect the Company’s
strategic orientation. These People Priorities serve as a compass for E.ON’s
HR activities.
E.ON’s Approach
Our People Priorities aim to put our employees at the center and create the
environment they need to work successfully. This also includes the
necessary resources and framework conditions for optimal professional
and personal development. The People Priorities focus on five action areas:
employer attractiveness and employee engagement, leadership and
performance, learning and career development, digital transformation, and
diversity, equity, & inclusion and well-being.
Guidelines and Policies
E.ON’s HR management has defined clear responsibilities to ensure
efficiency, flexibility, and competitiveness in a complex, international
environment. The central HR function (Group HR/Executive HR) is
responsible for important Group-wide tools and binding policies. Examples
include the central management of the entire life cycle of E.ON top
executives and the interfaces with the Group’s works councils. Our policy
approach is closely linked to the management logic of HR topics with
Group-wide significance as described in the “Organization and
responsibilities” section below.
Compensation Structures
E.ON’s compensation structures are clear and transparent. We place great
emphasis to fair remuneration. The compensation principles for our
employees are mainly governed by collective bargaining agreements,
which cover 82 percent of our employees. Whenever possible, E.ON offers
permanent employment, which applies to 94 percent of employees.
Total Workforce by Contract Type1 and Gender2 [•]
Headcount
Total
Male
Female
Other
Employees with permanent
contracts
77,554
53,147
24,404
3
Employees with a fixed-term
contract
5,353
3,022
2,331
0
Employees without
guaranteed working hours
-
-
-
-
E.ON Group
82,907
56,169
26,735
3
1Total workforce including board members, managing directors, apprentices, interns and working
students.
2Gender according to the employees' own information.
Organization and Responsibilities
We have continually refined our HR model to ensure effective
management of our activities in line with our People Priorities. In order to
jointly move forward with HR topics that are critical to success and add
value for E.ON, we have:
• defined central HR topics of Group-wide strategic significance
• established clear collaboration principles for cooperation between Group
HR and local HR departments
• agreed on clear roles and responsibilities between the main HR
committees
• introduced target agreements on HR topics that are critical to success.
We specifically promote cooperation between Group and local HR in order
to add value for our employees, our customers, and our shareholders. The
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E.ON Integrated Annual Report 2024
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units play a special role by sharing local requirements and perspectives and
by managing implementation locally.
Our management model is complemented by close and trusting
collaboration with employee representatives. This is based on our
declaration of principles on social partnership. Collaboration between the
social partners is coordinated by the central HR function and supported by
the local units. There are works councils or other forms of employee
representation in almost all units and Group-wide. We work with them
openly and constructively, always keeping the interests of our employees
in mind and actively informing them of all relevant upcoming changes.
Especially in times of change, we can build on the partnership with our
employee representatives and together make a significant contribution to
ensuring that E.ON is a successful and future-oriented company. Employee
representatives are involved in employee-related issues in a timely manner
in accordance with applicable national laws. We treat employee
representatives as social partners and equals and attach great importance
to their experience.
Specific Actions
Numerous projects and activities put our People Priorities into practice.
The most important measures for 2024 are outlined below.
Employer Attractiveness and Employee Engagement
We offer our employees exciting tasks that enable them to actively help
shape tomorrow’s energy world. Apprenticeship has traditionally been the
E.ON Group’s main way to secure skilled labor. Over 100 training locations
in 14 federal states and 2,582 apprentices give E.ON broad base across
Germany. Our range of apprenticeships covers the industrial-technical,
commercial and IT sectors and occasionally also includes professions in the
catering field. We also offer a variety of dual study programs. We support
young people in their professional orientation by offering career orientation
days, student internships, and entry-level qualification training.
Apprenticeship at E.ON is founded on diversity, equality, and inclusion. In
addition to a Group-wide recommendation for integrating young people
with disabilities into training, there are also local initiatives for integrating
refugees.
Alongside apprenticeship, we also want to be the employer of choice for
recent Bachelor’s and Master’s degree recipients. In 2022 we therefore
launched the Group-wide E.ON International Graduate Program (“EIGP”) to
develop university graduates personally and professionally and to retain
them at E.ON for the long term. In 2023 the EIGP was expanded to include
specialist tracks for customer solutions, energy networks, finance, and
digital. Cross-functional, national, and international assignments enable
participants to get to know our business and network Group-wide. We
support them with mentoring, coaching, and training. Entrants in 2024
consisted of 32 university graduates from 14 different countries. A study
published in 2024 rated our EIGP second best in Germany. We have
already taken measures to further improve this ranking.
We view attractiveness not only in relation to the outside labor market, but
also with regard to our current employees. We want to understand how
they rate their personal work situation at E.ON, how strong their employee
engagement is, and how it changes over time. This is part of promoting our
active feedback culture. We introduced an employee engagement
approach (YourVoice@E.ON) and rolled it out Group-wide in 2024. The
survey is anonymous and voluntary and can be integrated into everyday
working life with minimal effort. This continuous-feedback approach gives
managers real-time access to results, which are displayed on a dashboard.
This enables them to respond to individual issues or trends and initiate
improvements together with their teams. The Group-wide engagement
score, our central key performance indicator, was 8.2 in 2024, which
means we achieved our benchmark target.
> In addition to the engagement score, we also calculate Employee Net
Promoter Score (“eNPS”), which measures employees' willingness to
recommend E.ON as an employer. In 2024 eNPS improved by 7 points to
43 (2023: 36).<
Leadership and Performance
We expect our managers to act as role models. We value a clearly defined
leadership philosophy that applies to all managers. My Skill Guide, our
Group-wide skills model, is based on our strategic approach and our
mission to actively propel the energy transition. It applies to all employees
and describes how we act toward each other and our customers in order to
successfully implement our strategy. We drew on this model to develop
E.ON’s leadership principles, which formulate clear expectations for
managers regarding employee leadership, continuous individual
development, change management, and strategic business development.
We use a standardized performance-oriented remuneration system for our
executives. It is based on a pay-for-performance approach and includes
performance-related compensation elements. Fringe benefits are offered
on a country-specific basis and are also at an attractive level.
Learning and Career Development
To achieve our objectives, we need highly qualified employees. We can
only meet the challenges of an evolving business environment by means of
continuous learning and development. Our clear goal is to become a
learning organization. Our leadership and management team plays a
central role in this by exemplifying and promoting a learning culture. As we
see it, a learning organization creates an environment of lifelong learning,
promotes a strong feedback culture, and provides the necessary resources
so that continuous learning becomes a habit. This enables our employees
to develop their full potential. Promoting a culture of lifelong learning
enables us to ensure that the necessary skills are always available and can
be deployed in a targeted manner.
The 70-20-10 learning principle is part of our efforts to become a learning
organization. This model for effective learning and professional
development shapes our understanding of learning at E.ON and guides our
learning culture. The majority of learning (70 percent) ought to take place
through practical experience on the job, such as new tasks, project work,
and changing working methods. This is supplemented by practical learning
opportunities outside daily work, such as filling in for someone else and job
shadowing. Social interaction—such as dialoging with colleagues,
customers, or experts—is supposed to account for about 20 percent of
learning. We specifically promote this through measures like 360°
feedback, coaching, mentoring, and numerous in-house communities. The
remaining roughly 10 percent happens in formal learning opportunities,
such as courses, workshops, and training, both online and in person.
The 70-20-10 learning approach at E.ON is supported by digital
applications. A Group-wide one-stop store (MyGenius) provides access to
all formal learning content, while an opportunity marketplace (My Career
Hub) facilitates project assignments and job rotations. Our employees can
also benefit from more than 70 in-house coaches, whom they can access
on a coaching platform. Going forward, a central portfolio management
system for learning and development will ensure the availability of
strategically important, high-quality, and personalized learning content and
the avoidance of duplication in the portfolio.
Even a learning organization needs a certain system and structure. We
create skill dashboards to visualize E.ON’s existing and needed skills. These
dashboards provide an overview of relevant skills and identify potential
skill gaps. This information is incorporated into the targeted recruitment
and development of employees to effectively close any gaps. Our
employees’ individual development process is therefore a key element of
our approach to learning and development. All employees are to be
regularly assessed and, together with their manager, design an individual
development plan and discuss the status of their personal development in
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E.ON Integrated Annual Report 2024
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periodic evaluations. This process, our end-to-end development journey,
translates our strategy into individual learning and skills development.
Targeted activation measures are necessary to ensure that learning
becomes an integral part of everyday working life. In 2024 we again
successfully held Group-wide Learning Weeks. Over 110 in-house
instructors offered 86 online learning events, in which over 18,000
employees registered. The feedback was consistently positive and
underlined these events’ high degree of relevance.
E.ON’s comprehensive talent strategy is based on an open, flexible, and
inclusive talent landscape. The focus is on development options for all
employees and not just selected individuals. For example, all employees
have the opportunity to nominate themselves for development measures
and succession lists. Development is targeted and based on individual
potential, which is identified using Group-wide criteria and tools, such as
local and global people boards.
Our AI-based My Career Hub, which we rolled out in 2024, is an important
component of our talent strategy. This platform suggests suitable
development options, job offers, mentoring programs, and project
assignments to employees based on their skills, interests, and career goals.
A total of 18,890 employees were registered on the platform in 2024.
Digital Transformation
From an HR perspective, our Delphi HR program plays a significant role in
promoting E.ON’s digital transformation. Delphi’s aim is to standardize,
digitalize, and automate global HR processes and to harmonize role
profiles. This will likely not only increase the efficiency and effectiveness of
HR management, but also ensure the Company’s attractiveness on the
highly competitive job market. We will optimize our processes by
introducing a standardized human capital management system as the
Group’s leading HR system. This system will enable automated data
processing and offer an intuitive user experience that frees up time
resources. Integrated AI functions will ensure the system’s future viability
and efficiency.
Beyond the process landscape, we are also propelling the digitalization of
HR management by means of a proactive approach to people analytics. Our
aim is to use data to answer HR-related questions and to support our
corporate strategy. E.ON has therefore continuously expanded its people-
analytics expertise and uses data science methods to analyze HR data.
These investments provide valuable insights and make it possible to link
other data sources. For example, we model diversity targets using
predictive and prescriptive analytics to support targeted strategic
interventions. The people-analytics approach also promotes a culture of
fact-based decision-making.
Diversity, Equity, & Inclusion and Well-being
As a global company, we face a wide variety of challenges every day. We
overcome them by drawing on our workforce’s diversity and employees’
different skills, experiences, backgrounds, and perspectives. Our teams
reflect this diversity and benefit from mutual enrichment. Promoting
diversity is an important tool for increasing competitiveness in all parts of
our company. We are aware that the collaboration of people with different
backgrounds and perspectives yields innovations and new ideas. The
Diversity, Equity, & Inclusion (“DEI”) chapter describes in detail our
targeted measures to achieve our DEI targets.
Another key aspect of our commitment is our employees’ well-being. We
design working-hour models that respond flexibly to our workforce’s
needs. Hybrid work is now the Group-wide standard at E.ON. In addition,
E.ON offers employees in Germany the option of workation. This means
that, under certain conditions, they can work temporarily from another EU
country.
To further promote our employees’ physical and mental health, E.ON also
offers support in special life situations, such as when a family member is ill.
Furthermore we offer various additional company services ranging from
stress and addiction counseling to support in caring for relatives.
Goals and Performance Review
There is a regular annual target-setting process for HR topics of Group-
wide strategic importance. The HR Board, the E.ON HR organization’s main
decision-making panel, defines annual priorities and their performance
indicators. They are reviewed on a regular basis to ensure that the targets
are being achieved. This target-setting process involves all units that are
managed by E.ON HR and for which the defined topics are relevant and add
value.
In 2024 the HR priorities were integrated into the CEO target letters for the
Energy Networks, Energy Infrastructure Solutions, and Energy Retail
business divisions. E.ON SE coordinates and manages this centralized
process.
Progress and Measures [+]
At year-end 2024, the E.ON Group’s core workforce had
76,566 employees. This figure includes part-time positions on a pro rata
basis. The number of employees increased significantly—by 4,324 FTEs, or
6 percent—in 2024. The proportion of employees working outside
Germany (35,780 FTEs) decreased slightly to 47percent compared with
year-end 2023 (48 percent).
The number of employees at Energy Networks rose significantly. This is
mainly attributable to growth activities and the filling of vacancies in
Germany.
The change at Energy Infrastructure Solutions mainly reflected the transfer
of employees to Energy Retail due to E.ON’s new segmentation. The
addition of human resources, particularly in Germany, offset this increase
slightly.
Similarly, Energy Retail’s workforce increased, particularly in the United
Kingdom, because of the aforementioned transfers from Energy
Infrastructure Solutions. In addition, the acquisition of Solar Concept B.V.
and increased customer requirements in the Netherlands along with
increased staffing in energy trading led to an increase in this business
division’s core workforce.
The increase in the number of employees at Corporate Functions/Other
resulted from hiring related to digitalization. This was partially offset by a
decline in PreussenElektra’s workforce due to the dismantling of its nuclear
power plants.
The Diversity, Equity, & Inclusion chapter provides information about the
breakdown of employees by gender. Note 11 to the Consolidated Financial
Statements contains more information about the average number of
employees in the reporting year.
Core Workforce by Segment1
FTE2
2024
2023
Energy Networks
42,421
39,435
Energy Infrastructure Solutions
7,801
8,152
Energy Retail
20,372
18,865
Corporate Functions/Other
5,972
5,790
E.ON Group
76,566
72,242
1Core workforce includes board members and managing directors but excludes apprentices, interns,
and working students.
2FTE (Full-Time Equivalent) is the reporting figure for employee capacity, taking into account the
contractually agreed level of employment and the normal weekly working hours in accordance with
collective agreements or company practice. A full-time employee counts as 1 FTE.
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Core Workforce by Country1
FTE2
Headcount
Dec. 31,
2024
Dec. 31,
2023
Dec. 31,
2024
Dec. 31,
2023
Germany
40,786
37,526
42,293
38,945
United Kingdom
9,757
9,420
10,069
9,742
Romania
6,935
6,861
7,073
7,028
Hungary
5,996
6,009
6,019
6,035
Czech Republic
3,402
3,250
3,426
3,271
The Netherlands
3,368
3,075
3,718
3,438
Sweden
2,840
2,580
2,866
2,607
Poland
1,863
1,879
1,871
1,890
Other
1,619
1,642
1,648
1,662
E.ON Group
76,566
72,242
78,983
74,618
1 Core workforce includes board members and managing directors but excludes apprentices, interns,
and working students.
2FTE (Full-Time Equivalent) is the reporting figure for employee capacity, taking into account the
contractually agreed level of employment and the normal weekly working hours in accordance with
collective agreements or company practice. A full-time employee counts as 1 FTE.
Apprentices in Germany
Headcount
Percentages
2024
2023
2024
2023
Energy Networks
2,420
2,208
7.3
7.3
Energy Infrastructure
Solutions
34
29
1.8
1.8
Energy Retail
44
43
0.8
0.8
Corporate Functions/Other
84
85
1.6
1.7
E.ON Group
2,582
2,365
5.6
5.6
At the end of the year, E.ON had a total of 2,582 apprentices in Germany.
This corresponds to an apprenticeship ratio of 5.6 percent. Of
the 583 apprentices who completed their training in 2024, 537 were given
a permanent or temporary employment contract. This is a very high
takeover rate of 92 percent (2023: 538 of 587, or 92 percent). A
consistently high takeover rate of apprentices is one of the ways E.ON is
actively addressing the shortage of skilled workers.
Workforce Age Distribution
At year-end 2024, the average age of E.ON employees was 41. In 2024
around 22 percent of our employees were under the age of 31, 50 percent
between 31 and 50, and around 28 percent older than 50.
New Employee Hires and Turnover Rate
E.ON hired 11,189 new employees in the year under review. This reflects
the systematic implementation of our strategy and the achievement of our
growth targets. We had 8,199 departures in 2024, yielding a turnover rate
of 10.1 percent. This rate is equal to employee-induced terminations
(voluntary turnover), employer-induced terminations, retirements, expiring
fixed-term contracts, and deaths as a percentage of the average number of
employees. The voluntary turnover rate, which is the relevant key figure for
us, was 3.7 percent in 2024 (2023: 4.6 percent), reflecting 3,016
voluntary departures.
Diversity, Equity & Inclusion [+]
Society is diverse. So is our workforce. At E.ON, people work together who
are diverse in many ways, including nationality, generation, gender, culture,
religion, physical and mental abilities, sexual orientation and identity, as
well as ethnic and social background. E.ON encourages and utilizes this
diversity, which is an important component of our corporate culture, and
creates an inclusive environment, because the interaction of people with
different backgrounds, abilities, and personalities results in good ideas.
E.ON’s Approach
Diversity is one of the dimensions of E.ON’s sustainability strategy and an
essential aspect of our vision. Consequently, diversity, equity, and inclusion
(“DEI”) together comprise one of E.ON’s five People Priorities (the Working
Conditions and Employee Development chapter contains more
information).
We want to ensure equal opportunity for all our employees. Diversity is a
prerequisite for creativity and innovation, and we therefore would like to
take a targeted approach to promoting it. E.ON signed the German
Diversity Charter in 2008, publicly affirming its long-standing commitment
to a tolerant and inclusive corporate culture. The Company has been an
active member since 2020.
In 2024 we again participated in initiatives organized by the charter, such
as those in conjunction with German Diversity Day. For two weeks, our
company intranet offered a variety of formats and information on DEI on a
daily basis. In addition to the many formats offered Group-wide, our
business units conducted various events and offers at their facilities and/or
digitally.
Guidelines and Policies
The E.ON Management Board and SE Works Council signed the Diversity
and Inclusion Declaration in 2016. It pledges their commitment to creating
a diverse and inclusive work environment that empowers all employees to
realize their individual potential. Likewise in 2016, the Company, the SE
Works Council, and the Group representation for severely disabled persons
signed the Shared Understanding of Implementing Inclusion at E.ON.
Organization and Responsibilities
DEI is managed by Group HR/Executive HR together with a network of HR
experts that meets regularly in person or virtually and shares information.
The Management Board—with Group HR/Executive HR’s support—sets the
diversity targets for the company as a whole and for its business units.
Some of these targets may also relate to country-specific legal
requirements. In addition, the challenges vary by country, so each business
unit addresses diversity in its own cultural context. This gives them the
opportunity to develop targeted programs that reflect the country or
regions in which we operate.
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E.ON Integrated Annual Report 2024
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Specific Actions
E.ON promotes DEI through a variety of programs and networks. These
include a mentoring program at E.ON companies in Germany to prepare
female employees for management positions.
The Women@E.ON network aims to increase the visibility and influence of
women at E.ON. The Group-wide LGBT+ & Friends network promotes
equality, diversity, and an inclusive work environment. In addition, E.ON is
a member in various initiatives, such as the Initiative Women into
Leadership (“IWiL”) and the European Round Table (“ERT”).
The E.ON Management Board continued its support for diversity networks
in 2024. Currently, the following company networks are sponsored by
Management Board members and receive financial support from E.ON SE.
• adaptABILITY, an initiative for disability and mental health. Sponsor:
Chief Executive Officer (“CEO”)
• LGBT+ & Friends, the second-placed diversity initiative at the 2021 CEO
Award for D&I. Sponsor: formerly Chief Financial Officer (“CFO”), Chief
Operating Officer–Commercial (“COO-C”), since June 2024
• Women@E.ON, an alliance of and for women, which won the 2020 CEO
Award for D&I as best network group. Sponsor: Chief Operating Officer–
Networks (“COO-N”).
In 2024 the CEO Award for Diversity, Equity and Inclusion was conferred
for the sixth time; the motto was “Accessibility.” The awards pay tribute to
individuals (category: Accessibility Hero) and initiatives (category: Best
Diversity Campaign) at E.ON that strive to make a difference in diversity
and inclusion. In 2024 the winners of the CEO Award for Diversity, Equity,
and Inclusion were chosen in a Group-wide vote. Joanna Hammond was
honored in the Accessibility Hero category. Joanna Hammond oversees the
adaptABILITY network and actively promotes inclusion. The CEO Award for
Diversity and Inclusion in the Best Diversity Campaign category went to
envia TEL’s workshop series entitled “Dealing with inappropriate
behaviors.” Its aim was to foster more sensitive and mindful interactions
among employees.
A 15-month pilot project called Diversity Compass came to a successful
conclusion in 2024. The project was initiated in 2023 by the Stifterverband
and the Charta der Vielfalt (Diversity Charter). E.ON and five other
companies participated. The pilot’s aim was to design structures, tools, and
measures to include diverse groups of people in everyday working life, to
consider them in all Company areas and processes, and to firmly engrain
DEI in corporate culture. The project was supported by an outside process
consultant. As part of the project, E.ON formulated a DEI vision and
mission in an international project group and developed a maturity
approach for the continuous development of diversity activities.
E.ON’s commitment to DEI was strengthened by the LGBT+ Roadmap.
Launched in January 2024, the roadmap is an action plan to create a more
inclusive workplace. This 18-month initiative, sponsored by an E.ON SE
Management Board member, aims to increase visibility, support LGBT+
employees, and strengthen anti-discrimination measures.
In August 2024 E.ON was officially represented for the second time at the
21st Christopher Street Day in Essen, known as “Ruhr Pride.” On this day,
about 70 E.ON employees demonstrated our support for openness,
diversity, and acceptance. Participation in Ruhr Pride was initiated by the
LGBT+ & Friends corporate network.
The first E.ON LGBT+ & Friends Conference was held in Prague in
November 2024, bringing together 100 participants from various Group
units. The network sharpened E.ON's LGBT+ strategy and designed actions
for the 2025 financial year.
The CEO Listening Tour, which was developed in 2021, continued in 2024
as well. This format is less about talking to employees and more about
listening to them. The discussions focus on the work environment at E.ON,
discrimination in the workplace, corporate networks, and many other
topics. In 2024 the focus was on mental health and depression.
E.ON also introduced a pilot DEI survey as part of its commitment to
promoting an inclusive work environment. This anonymous survey, which
started in the fall of 2024, will help assess selected units’ workforce
diversity and inclusivity. The findings will contribute to targeted
improvements in our DEI activities.
Goals and Performance Review
E.ON SE and E.ON companies in Germany must comply with the German
Law for the Equal Participation of Women and Men in Leadership Positions
in the Private Sector and the Public Sector, which took effect on May 1,
2015. In February 2022 the E.ON Management Board adopted new target
quotas for E.ON SE for the new implementation period beginning on July 1,
2022. The target quotas are 36 percent for the proportion of women
occupying both the first and the second levels of management below the
Management Board. The targets are to be met by June 30, 2027.
The proportion of women occupying the first level of management below
the Management Board was 28.0 percent at the end of the 2024 financial
year, that of the second of management below the Management Board
was 30.9 percent.
The E.ON SE Management Board has recommended to those E.ON Group
companies that are legally obligated to set targets for the proportion of
women on their supervisory board, management board, and the next two
levels of management that they select ambitious targets that likewise
should be met by June 30, 2027.
In addition, it was recommended that other relevant E.ON Group
companies set appropriate quota targets even if they are not legally
obligated to do so. The companies of the E.ON Group have heeded this
recommendation. In addition, in 2021 E.ON set a voluntary Company-wide
target that goes beyond statutory requirements. The target is to increase
the proportion of women in management positions in all business units in
all countries to at least 32 percent by year-end 2031. This figure
corresponds to the proportion of women in E.ON’s workforce at year-end
2021. Group HR monitors progress toward the target once a year and
reports the findings to the E.ON Management Board. E.ON discloses the
respective figures at year-end for the E.ON Group as a whole. The
development of the proportion of women in management positions in
2024 shows that the Group is well on the way toward achieving its 2031
target.
Share of Female Executives1
Percentages
2024
2023
E.ON Group
26
24
1Against the total number of managers.
Progress and Measures
The proportion of female employees remained constant relative to the prior
year. Women accounted for 32 percent of our workforce at year-end
2024.
Women’s Quota by Segment1
Percentages
2024
2023
Energy Networks
24
23
Energy Infrastructure Solutions
26
28
Energy Retail
50
50
Corporate Functions/Other
40
40
E.ON Group
32
32
1Total workforce; includes board members, managing directors, apprentices, interns, and working
students. Due to the changes in segment reporting, the previous year's figures have been adjusted
accordingly.
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Proportion of Severely Disabled Employees in
Germany1 [•]
Percentages
2024
2023
Energy Networks
4.3
4.4
Energy Infrastructure Solutions
2.7
3.3
Energy Retail
3.8
4.5
Corporate Functions/Other
5.0
5.6
E.ON Group
4.2
4.5
1Total workforce; includes board members, managing directors, apprentices, interns, and working
students. Due to the changes in segment reporting, the previous year's figures have been adjusted
accordingly.
► At the end of 2024, 1,813 people with severe disabilities or equivalent
were employed at E.ON companies in Germany (prior year: 1,775). ◄
The Human Rights Policy Statement commits E.ON to freedom, equality,
and respect for all people without distinction. The aim is to provide a fair
and mutually trustful working environment to all employees. E.ON
therefore does not ask for or collect information about employees’
ethnicity, marital status, and so forth. In fact, the laws of some countries
prohibit doing so. Germany, however, obliges companies to collect and
publish data about the number of employees with severe disabilities at
their operations.
Security of Supply [+]
E.ON’s objective as an energy company and distribution system operator is
to ensure a secure supply of electricity and gas to its customers. E.ON is
not only concerned with ensuring security of supply. Reducing the use of
carbon-intensive fuels is important as well. An example of how to achieve
this is by increasing biogas capacity and other low-carbon fuels.
Increasing the capacity of renewable energy systems (“RES”) also helps
decrease carbon-intensive energy. Investing in wind, solar, and other RES
reduces the proportion of fossil fuels in the energy mix, which lowers
greenhouse gas emissions and promotes a more sustainable energy supply
A reliable electricity and gas supply is essential for industrialized countries
to be able to maintain their economy and meet their inhabitants’ basic
needs. Due to security of supply’s social relevance, lawmakers serve as
representatives of various groups’ interests and exercise this function by
enacting various regulatory requirements. Industrial customers that
operate high-precision production facilities require a constant network
frequency. If frequency fluctuates, machinery can break down, resulting in
additional costs. A complete interruption of the electricity supply can have
serious consequences, and not just for industrial customers. At companies,
government agencies, and households, most processes are no longer
possible without electricity. E.ON enters into dialog with local residents
and customers in order to address their expectations as well as their
concerns about risks relating to security of supply. One challenge in power
supply is that energy is increasingly being generated decentrally and
consequently fed into the E.ON network from many different points.
Moreover, renewables feed-in fluctuates because it depends on the
weather and other factors beyond E.ON’s control.
E.ON’s Approach
We continued the E.ON Lab in 2024 to study more potential innovations. In
Arnsberg/Sundern and Lüneburg, Germany, E.ON is testing the extent to
which various aspects of a future energy world are feasible, useful, and
scalable. E.ON is expanding its digital equipment in these communities and
assessing the value that such smart solutions add for customers and
networks. We are also exploring whether and how current energy-market
regulation can better reflect customer needs. E.ON’s smart solutions
promote secure and efficient network operation. This gives us a
transparent view of the operating status of network equipment and energy
flows and enables us to make targeted use of the flexibility available in our
networks.
E.ON places great importance on ensuring that all customers and other
affected stakeholders can make suggestions or express their needs quickly
and easily. Numerous channels—such as mail, fax, telephone, our energy
portal, social media, and branch offices—are available for this purpose. In
addition, all of our distribution assets have a sign displaying an outage
hotline that can be used to report an outage.
Our network operators’ websites have a form that can be used to make
quick and easy written contact. The data entered are automatically
forwarded to the correct department. Affected customers receive a
response within 24 hours. Staff in our network operators’ branch offices
are happy to make an appointment to provide free, personal, expert, and
comprehensive advice—if desired, outside normal opening hours. In
addition, individual on-site appointments can be used to address concerns.
At the request of a municipality in one of our network territories, we can
hold a town hall information event at which one of our employees advises
residents on all topics relating to energy supply.
Our application documents for planning approval procedures for network
expansion projects are displayed for one month in the town halls of nearby
towns and municipalities. This is announced publicly in advance. All citizens
can use the public display as an opportunity to submit suggestions and
concerns about specific aspects of the plan.
Guidelines and Policies
In 2021 E.ON adopted a strategy for deploying more smart technology—
smartifying—in its low- and medium-voltage grids. The smartification
strategy aims to prevent outages at an early stage and to reduce their
duration through more intensive maintenance. The strategy’s
implementation has four expansion stages: controllable and observable
local grid stations, observable low-voltage grids, controllable low-voltage
grids, and digital excellence. The strategy applies in Germany and all other
countries in Europe where the Company operates. E.ON’s smart-tech
deployment targets vary by country but generally far exceed those set by
each country’s regulatory agency. The “Progress and Measures” section
below presents the strategy’s progress using key performance indicators
(“KPIs”).
Various laws, such as the Energy Industry Act (German abbreviation:
“EnWG”), ensure the security of Germany’s electricity and gas supply. This
law makes sure that sufficient generating capacity is available and that
electricity and gas networks remain stable. The Federal Network Agency
monitors compliance with these requirements. In emergency situations,
the Energy Security Act (German abbreviation: “EnSiG”) and the Gas
Security Ordinance (German abbreviation: “GasSV”) stipulate how vital gas
requirements are to be met in order to ensure security of supply even in
times of crisis.
E.ON has likewise pursued a growth strategy since 2021 to promote
security of supply and cross-sector decarbonization. Central to this
strategy is achieving a balance between sustainability, security of supply,
and affordability. This is all the more important because our customers
Employees by gender1,2 [•]
Headcount
2024
Male
56,169
Female
26,735
Other
3
E.ON Group
82,907
1Total workforce including board members, managing directors, apprentices, interns, and working
students.
2Gender according to the employees' own information.
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E.ON Integrated Annual Report 2024
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continue to expect a secure energy supply at affordable prices. The
Strategy chapter provides more information about our growth strategy.
Organization and Responsibilities
E.ON’s regional network companies are responsible for the safe and
reliable operation of its distribution networks. Network control centers
manage network operations. They are also responsible for resolving
unforeseeable outages in their service territory. E.ON’s crisis management
system defines the responsibilities and procedures for dealing with
widespread disruptions. The Incident and Crisis Management policy
provides guidelines for such situations. The Chief Operating Officer–
Networks (“COO–N”) oversees the Energy Networks business division.
Under his leadership, three departments (Energy Networks Europe, Energy
Networks Germany, and Energy Networks Technology & Innovation) at
Corporate Functions manage the business division’s regional units. These
departments’ tasks include strategic development, investment planning,
and asset management.
E.ON attaches great importance to taking the views and concerns of
affected communities into account in its decisions and activities. This takes
place through various forms of cooperation, such as citizen dialogs, the
sharing of views within our industry and with regulators, as well as
discussions with Germany’s Federal Network Agency (German acroynm:
“BNetzA”).
Affected communities are involved at different phases depending on the
respective decision-making processes and activities. This can begin as early
as the planning phase and extend through implementation and operation.
The type and frequency of involvement reflect each community’s particular
needs and demands.
Certain functions at our distribution system operators have operational
responsibility for community involvement. These functions have different
places in each organization’s setup. They ensure that the results of
community involvement are incorporated into the business plan. This
ensures that communities’ concerns are adequately taken into account. An
example of project-related communications is the public information
campaign conducted by Westnetz to accompany the construction of a 110
kV high-voltage power line in Idar-Oberstein in southwest Germany.
E.ON and its network companies provide the necessary personnel,
technical, and financial resources to manage the impact of network
construction projects. Employees in regional Public Relations are
responsible for all communications with all the stakeholders affected by,
say, a network expansion project and support the projects with press
releases where necessary and, where appropriate, with local media events
as well. They have all the necessary technical resources, such as a fully
equipped (mobile) workstation, to perform these tasks.
Specific Actions
E.ON wants to operate secure and stable networks in a future energy world
as well and thus offer its customers a reliable electricity and gas supply at
reasonable costs. That is why E.ON is upgrading to smart grids by
equipping networks with sensors and control technology, increasing the
level of automation, and adding a digital layer. This will enable us to
manage energy flows in line with demand and to monitor our grids in real
time and with much greater granularity than today. Additionally, smart-
grid technology makes it possible for us to partially avoid or delay some
grid expansion.
Going forward, smart grids will serve as the platform for the innovative
technologies and new business models that contribute to the energy
transition’s success. Examples include:
• Flexible tariff models that use price incentives to influence demand and
thus help stabilize networks
• The aggregation of multiple distributed power generating units into
virtual power plants that respond dynamically to changes in
consumption
• Peer-to-peer sharing solutions in the form of a local energy market
place, such as for households and businesses
• Fluctuation-tolerant local energy systems that have battery, gas, or heat
storage devices and mutually complementary generating units.
E.ON has investment and maintenance programs under which it expands
and maintains its networks in line with demand. E.ON will invest €43
billion from 2024 to 2028, of which €35 billion will go toward its Energy
Networks business division and here, in particular, toward network
expansion. This is intended to enable us to ensure that all our network
customers are connected to the network and receive a reliable energy
supply. In addition, E.ON invests an average of €400 to €500 million
annually to expand its power networks to connect more renewables. The
Sustainable Investments chapter contains more information about
sustainable investing and E.ON’s green bonds.
Our regional network companies are responsible for carrying out the
measures, which are planned for one or more years. E.ON invested about
€5.8 billion in network expansion in 2024. Part of the investment budget
went toward the gradual expansion of smart grids: E.ON’s network
structure is being progressively equipped with sensors, control and relay
technology, as well as being automated and digitally networked. The
increasing use of smart-grid technology makes it possible to avoid or delay
costly investments in network expansion, for example, by using new
technology to make better use of existing overhead lines. Investment
decisions always consider the efficiency of each measure alongside
security of supply. This means that E.ON chooses those solutions that
make the most sense from both a technical and business standpoint. The
introduction of ISO 55001 is a building block in the systematization of
decision-making. The core objective is to make optimal use of existing
resources (in particular budgets, materials and personnel). To this end,
projects are evaluated according to criteria such as cost-effectiveness,
feasibility, and impact on the environment and the community.
E.ON is a long-standing and reliable network operator throughout
Germany. Its network customers therefore benefit from the strengths of
the Group as a whole as well as from its regional presence at numerous
locations across Germany. Our community ambassadors organize local
information events to keep communities and interested parties up to date
on current topics and developments in the energy sector. They strive to
find swift solutions for suggestions and complaints and involve company
experts in this process.
Goals and Performance Review
E.ON works closely with national government authorities—like Germany’s
Federal Network Agency (German abbreviation: “BNetzA”)—to address the
objective of security of supply. The BNetzA is the regulatory agency for
Germany‘ electricity and gas markets and plays an important role in
monitoring and ensuring network stability and security of supply. Regular
dialog and cooperation with the BNetzA enable E.ON to ensure that its
electricity and gas supply complies with legal requirements and meets the
stakeholders‘ needs. Security of supply is heavily regulated, and E.ON does
not set quantitative targets and focuses instead on meeting regulatory
requirements.
Nevertheless, E.ON measures the quality of the electricity supply by means
of key performance indicators (“KPIs”) like system average interruption
duration index (“SAIDI”) and system average interruption frequency index
(“SAIFI”). SAIDI measures the average duration of power interruptions per
year, while SAIFI measures the average number of power interruptions per
year. These KPIs serve as indicators of the electricity supply’s reliability and
enable E.ON to continually improve its performance and further increase
security of supply. The next section contains more details about the KPIs.
In addition, we use Journey NPS to measure our performance when
interacting with existing and potential customers who have had one or
more interactions with E.ON. The Customer Satisfaction chapter provides
more information about related KPIs.
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66
Progress and Measures
E.ON’s regional network companies record all planned and unplanned
service interruptions in their distribution networks. The data collected are
aggregated into SAIDI for power. As stated above, it indicates the average
interruption duration per customer and year.
E.ON reports SAIDI—the overall figure and broken down into planned and
unplanned service interruptions—of its fully consolidated network
companies by country. The figures for Germany reflect the weighted
average of its fully consolidated network companies there. They are
calculated using the method prescribed by the BNetzA. The calculations
are based on service interruptions that have been verified by the BNetzA.
All other countries in which E.ON operates networks have similar quality
standards. Their national regulatory agencies verify and validate network
operators’ reported service interruptions. SAIDI figures for each country
therefore reflect the methodology prescribed by its regulatory agency.
› Our network companies also calculate the system average interruption
frequency index (“SAIFI”). As stated above, this measures the average
number of interruptions per customer and year. The data collection process
for SAIFI is the same as for SAIDI. ‹
By the end of the data collection period in 2024, no regulatory agency had
completed the process of validating outages for 2024. This report is
intended to contain final figures on the continuity of supply that have been
officially validated. Consequently, the country-specific figures for the prior
year are disclosed at right.
SAIDI and SAIFI provide important information on network service quality.
At regular intervals, our network operators report them and other KPIs,
such as network losses, to the E.ON Management Board member
responsible for network operations for the purpose of managing supply
reliability.
The following presentation of KPIs on service quality considers different
causes when classifying disruption-related interruptions in individual
countries because their respective national regulatory agencies use
different methodologies. These KPIs are generally reported without
interruptions due to force majeure; any exceptions are indicated.
The table below provides information on our system lengths through the
end of 2024.
System Length at Year-end [x]
Power
Gas
Thousand kilometers
2024
2023
2024
2023
Germany1
692
694
98
99
Sweden
143
142
0
0
Hungary
80
85
18
18
Czech Republic
68
67
5
5
Romania
82
80
26
26
Slovakia
0
23
0
0
Poland
19
19
0
0
Croatia2
–
–
2
2
Total
1,084
1,110
149
149
1Figures for Germany are for the respective previous year: 2024 for 2023, 2023 for 2022.
2Gas grids only.
SAIDI Power1, 2
Minutes per customer
2024
2023
Germany
23
21
Scheduled
6
6
Unscheduled
17
15
Sweden3
138
156
Scheduled
43
33
Unscheduled
95
123
Hungary
149
151
Scheduled
92
94
Unscheduled
57
57
Czech Republic
309
253
Scheduled
163
154
Unscheduled
146
99
Romania
280
331
Scheduled
212
254
Unscheduled
68
76
Poland
47
71
Scheduled
8
7
Unscheduled
39
64
1Totals may deviate due to rounding.
2The figures are based on previous year values.
3 Includes the impact of force majeure.
SAIFI Power1, 2 [x]
Interruptions per customer
2024
2023
Germany
0.45
0.41
Scheduled
0.10
0.08
Unscheduled
0.35
0.32
Sweden3
1.86
1.67
Scheduled
0.68
0.47
Unscheduled
1.18
1.20
Hungary
1.08
1.12
Scheduled
0.34
0.33
Unscheduled
0.74
0.79
Czech Repbulic
2.10
1.77
Scheduled
0.60
0.59
Unscheduled
1.50
1.18
Romania
1.51
1.80
Scheduled
0.68
0.82
Unscheduled
0.83
0.98
Poland
0.99
1.05
Scheduled
0.16
0.14
Unscheduled
0.83
0.91
1The SAIFI is subject to the same definitions as the SAIDI and is determined on the basis of the
same fault causes as the SAIDI.
2Totals may deviate due to rounding.
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67
Customer Satisfaction [+]
Customers from different sectors—households and businesses, cities and
government entities—understand that a digital and decarbonized future
means that they will not only consume less energy, but also increasingly
make and store their own clean energy. These customers are extremely
knowledgeable and discerning. They expect E.ON not only to listen to and
anticipate their needs, but also to design innovative and sustainable energy
solutions, deliver best-in-class services, and provide a consistently good
customer experience. Earning and retaining their trust and loyalty is very
significant for us to sustainably grow our business. Satisfied customers
tend to stay with us longer, to purchase additional products and services,
and to recommend us to their family and friends.
E.ON’s Approach
E.ON continually measures and improves the experience we offer our
customers. It is essential for us to be systematically customer-centric. The
E.ON brand promises to give our customers what they want in the future
energy world: consistently positive experiences with our services and
smart, sustainable solutions. Our new campaign in Germany positions
E.ON as the playmaker of the energy transition and shows how energy gets
from where it is produced to where it is needed. We work to empower
people, companies, and cities across Europe to create the sustainable world
that they want to live in. The purpose is to build energy communities in
which everyone can do their part and meet these needs—from a household
opting for green electricity to an entire city committing to sustainability.
Delivering on this promise will make the E.ON brand distinctive and enable
us to successfully expand our business. E.ON’s objective is to become the
number one energy-solutions company in all of its markets and thus to live
up to its ambition of being the playmaker of the energy transition.
Organization and Responsibilities
The Chief Executive Officer (“CEO”) coordinates, from Corporate Functions,
our brand and marketing strategy with the aim of further developing and
strengthening the E.ON brand. The Chief Operating Officer—Commercial
(“COO—C”) supports the Energy Retail and Energy Infrastructure Solutions
businesses for all customer segments and in all E.ON markets. The regional
units’ Customer Experience teams are responsible for customer
satisfaction. They carry out projects and measures in their respective sales
territories and exchange information on successful approaches and
progress on a monthly basis. There are Customer Experience teams in
Germany, the United Kingdom, Italy, Romania, Sweden, the Czech
Republic, Hungary, Poland, and the Netherlands.
The CCOs and COOs also hold quarterly meetings at the Management
Board level. The aim is to improve customer orientation. The focus in 2024
6 This can involve multiple interactions within a process such as a move, or multiple contacts from an existing or potential customer with the same request, for example via the chatbot.
was on creating a common operating model for successfully managing Net
Promoter Score (“NPS”).
The Customer and Market Insights team studies which trends shape our
customers’ attitudes and behaviors. For this purpose it conducts consumer
studies on, for example, dynamic and flexible tariffs as well as innovative
energy solutions.
Specific Actions
E.ON measures the loyalty and trust of its existing and potential customers
by means of NPS, which was introduced in 2009 and became a Group-
wide program in 2013. NPS indicates customers’ willingness to
recommend E.ON and its services. It also helps us identify which issues are
currently of particular importance and thus to adapt our activities to
current customer needs. E.ON measures two types of NPS:
• Strategic NPS (“sNPS”) compares E.ON’s performance with that of its
competitors and is based on the feedback of customers regardless of
whether they have had any interaction with E.ON.
• Journey NPS (“jNPS”) measures the loyalty of current and potential
customers who have completed one or more interactions6 with E.ON –
for example, if E.ON helped them transfer their energy service to their
new residence when they move.
NPS is used by our regional units in Germany, the United Kingdom, Italy,
Romania, Sweden, the Czech Republic, Hungary, Poland, and the
Netherlands.
A methodology introduced in 2017 enables us to measure strategic NPS
consistently across all markets. The methodology for sNPS and jNPS is
based on an automated reporting process in order to avoid the errors of
manual data entry and to improve data quality and verifiability. This allows
us to identify and resolve customer issues experienced in multiple markets.
It also makes it easier for us to recognize the areas in which useful
innovations can be offered.
Goals and Performance Review
Every year, E.ON sets company-wide targets for strategic and journey
NPS. E.ON uses both indicators at the segment and unit level for purposes
of management control. Targets are set for each unit using a uniform
approach and are based on the previous year’s performance. Strategic NPS
is highly relevant for management control because of the information it
provides about competitors. The E.ON Management Board has received a
monthly NPS report since September 2020. In addition, periodic market
reports enable the Chief Operating Officer—Commercial and the CEOs of
the regional units to exchange views on NPS issues and customer topics.
NPS also plays a role in executives’ variable compensation. This consists of
two components: one factor reflects an executive’s individual performance,
the other company performance. Progress in strategic and journey NPS has
accounted for 20 percent of the calculation of company performance since
2020. The achievement of NPS targets is also factored into determining
the E.ON Management Board’s compensation.
Group-wide sNPS fell by 12 points to 89 percent in 2024. sNPS in the
United Kingdom recovered after declining sharply during the energy crisis.
Germany bucked the market trend and is almost on a par with the
competition. The Netherlands (Essent) remains the sNPS market leader but
was unable to pull further ahead of the competition. After performing well
for years, the Czech Republic and Italy are still ahead of the competition,
but both regions are finding it difficult to maintain their lead. Romania and
Poland increased their scores more than the competition, thus enhancing
their position.
Which operational jNPS data must be measured by all regions was, for the
first time, defined centrally in 2024, namely: customer feedback on
complaint management and the payment process. The other two journeys
vary by region. The regional teams in the United Kingdom, Germany, the
Czech Republic, Romania, and Hungary exceeded their jNPS performance
targets in all four target-relevant journeys and achieved 150 percent.
Poland and Italy achieved 100 percent. Sweden achieved the target in two
journeys, the Netherlands in one. The expiration of government support for
households’ energy costs in Germany resulted in all of EDG's work capacity
being occupied with translating the altered regulatory conditions into its
systems. These circumstances made it impossible to further improve the
customer experience in our payment processes.
Energy Affordability [+]
Geopolitical events like the ongoing war in Ukraine and political instability
in the Middle East continue to impact energy prices. This presents E.ON—
as well as its customers—with more challenges alongside those posed by
the energy transition. One thing is certain: the energy supply must remain
reliable, secure, and affordable for industry and consumers.
Energy companies like E.ON play a central role in minimizing climate
protection’s social impact. E.ON’s investments in modern infrastructure,
innovative technologies, digitalization, and intelligent customer solutions
enable it to enhance energy efficiency along the entire value chain. E.ON’s
long-standing approach is for its business to meet societal expectations
regarding energy and also to make a positive contribution toward three
objectives: climate protection, security of supply, and affordability.
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E.ON Integrated Annual Report 2024
68
E.ON’s Approach
Prices on commodity markets constitute a major driver for the energy
prices charged to our retail and industrial customers. E.ON’s influence on
customers’ energy prices is limited. E.ON focuses on operating its networks
efficiently and invests in network infrastructure to continually reduce
maintenance costs in particular and thus to help lower end-customer
prices. The ”Specific Actions” section of the Security of Supply chapter
describes such measures. To ensure fair prices for our customers and to be
able to plan long term, we generally procure electricity and gas in advance.
However, we cannot insulate ourselves from market developments and
must factor in all cost components into our pricing—both when these
components fall and when they rise. This affects our customers as well,
who in some cases have to accept additional costs. Especially for
vulnerable customers the situation can become challenging for a variety of
personal circumstances. E.ON’s approach to energy affordability therefore
encompasses clearly defined guidelines and support programs.
Guidelines and Policies
Our corporate responsibility regarding energy affordability has two main
aspects. We strive as an energy company to comply fully with all existing
legal requirements and meet current standards and guidelines in our
markets. In addition, energy affordability is an aspect of the fundamental
right to be supplied with energy. This makes it part of the International
Covenant on Economic, Social, and Cultural Rights and thus of the
International Bill of Human Rights. E.ON is unequivocally committed to
upholding these rights and has enshrined this in its Human Rights
Statement. This statement obliges us not only with regard to our own
business operations and our suppliers, but also to the customers to whom
we supply our products and services. The “Guidelines and Policies” section
of the Human Rights and Supply Chain Management chapter contains
more information about the statement.
In October 2024 the Group Sustainability Council adopted the following
Group-wide principles in order to place more emphasis on energy
affordability and, in the future, to refine E.ON’s approach to it:
• Support for vulnerable customers: we advocate for social policy
solutions and reduced energy taxes and levies
• Support programs: we facilitate access to support for vulnerable
customers through welfare organizations or our own programs—such as
debt advice and energy-efficiency tips—that at a minimum meet legal
requirements.
• Disconnection is the last resort: we engage with customers in a timely
manner to avoid disconnections.
Organization and Responsibilities
Energy affordability is COO-C’s responsibility. The Energy Retail division at
E.ON SE’s Corporate Functions is tasked with overall coordination and
control. Our regional units are responsible for customer service in our
markets. Each has established its own customer service organization.
Ultimately, the regional units bear responsibility for supporting vulnerable
customers. The units design individual, regional programs for vulnerable
customers within a predefined framework. The Customer Satisfaction
chapter contains more details on the organization of the regional units’
customer areas.
Specific Actions
Our retail energy business prioritizes aims to create tailored solutions for
our customers. We use transparency and open communications to help
them make informed decisions—when they initially opt for a product and
throughout a contract’s term.
Loyal and satisfied customers are important to E.ON. We are committed to
supporting households experiencing financial difficulties by offering them
suitable and easily accessible programs so that we can continue to supply
them with energy. We want to offer vulnerable customers effective and
reliable support and help them overcome their challenges. Each case can
be different. We therefore adapt our programs to customers’ individual
needs, the market situation, and government programs in different
countries. Examples in our main markets include the following:
• Our sales units in Germany offer personalized advice via various
channels (telephone, online, mail) and stay in contact with our
customers. The energy-saving advice and tips we offer on our website
and other channels are also important. Our customers can also contact
the payment assistance team. It supports customers who are
experiencing financial difficulties by working with them to find a suitable
instalment payment plan.
• A team of trained specialists in the United Kingdom supports our most
vulnerable customers there. In addition, all customer-facing employees
receive extensive training on affordability. Eligible customers can benefit
from the E.ON Next Energy Fund, which provides assistance in cases of
financial hardship and, for example, can grant an award to clear any
outstanding energy debt and provide replacement energy efficiency
appliances. Customers can use the website to determine whether and to
what extent they are eligible. In 2024 we also worked with charities like
Citizens Advice, Stepchange, and Kidney Care UK and also supported
these organizations financially. The support includes help accessing
unused benefits, energy efficiency advice, prepaid meter vouchers, and
financial grants.
• Our customer service in the Netherlands offers free advice over the
phone and an online home scan to reduce energy consumption. Essent
has worked closely with other major energy companies and the Dutch
government to create “Noodfonds,” an emergency fund for vulnerable
households having difficulties paying their energy bills. Over 50,000
Dutch households received financial support in 2023. This number
surpassed 110,000 households in 2024.
We only consider disconnection as a last resort. We therefore try to engage
in a timely manner with customers who could potentially face a
disconnection to prevent it from happening.
We ensure that the programs we offer actually help customers with
payment difficulties by seeking direct contact with them. In the
Netherlands, for example, we strive to proactively engage with such
customers. Our approach is social collection: instead of simply offering
payment options, we first try to understand why someone is unable to pay.
Our employees speak with these people in order to identify the causes. We
offer energy-saving advice and work with partners that offer independent
payment advice and coaching.
Goals and Performance Review
Although E.ON has not set any measurable targets, it reviews the
effectiveness of the above-described approach. E.ON first adopted
guidelines for its approach to energy affordability in 2024. It therefore
plans to fine-tune the evaluation and review process. COO-C will
communicate the guidelines for energy affordability to the regional units to
ensure that they understand them. We intend to do this in the first half of
2025. The topic will be included in the regional units’ periodic performance
reviews as well. We plan that in the future these reviews will include the
regional units confirming their compliance with the guidelines and
reporting on measures they have implemented regarding energy
affordability. Net Promotor Score (“NPS”), however, already gives us a tool
for measuring existing and potential customers’ loyalty and trust against
preset targets. The Customer Satisfaction chapter provides more
information on NPS.
E.ON is convinced that it would be sensible to find a (social) policy solution
to support vulnerable customers in crisis situations. Taxes, levies, and
surcharges still account for a large portion of energy costs. Reducing
energy taxes and levies for these customers would therefore be
appropriate. Consequently, E.ON advocates reducing electricity taxes and
levies, which account for a significant proportion of the final price.
Reducing these costs would reduce the economic burden on end-
consumers and companies.
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E.ON Integrated Annual Report 2024
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Community Involvement [•]
E.ON’s Approach
E.ON is part of the countries and regions where it does business and
therefore feels obliged to make a contribution to their prosperity, economic
development, sustainability, and quality of life. We do this primarily by
creating jobs and by offering energy solutions that enhance our customers’
sustainability and comfort. In addition, E.ON engages in community
involvement and supports employee volunteering in all regions where it
operates.
E.ON local representatives know their country’s needs and challenges best.
So E.ON lets them decide which projects and organizations to support.
E.ON is convinced that local decision-making is more suitable than central
directives for giving its community involvement activities a societal impact.
Our Community Investments
E.ON reports its corporate giving by the categories below.
Alongside corporate giving, E.ON makes strategic investments in
community involvement, which are typically more long-term in nature. In
2024 the financial resources for sponsorships went toward three focus
areas: climate protection, access to energy, and support for the next
generation.
E.ON’s corporate giving and strategic community involvement totaled
more than € 17 million in 2024 (prior year: € 22 million).
E.ON Foundation
The E.ON Foundation aims to promote a sustainable transformation of the
energy system that reflects people and their social practices. Guided by the
conviction that a purely government-mandated, over-regulated energy
transition will not succeed, it supports projects, events, and practical
formats relating to energy and society. In 2024 the foundation provided
€ 2.4 million in funding to the projects it supports. Because the foundation
is independent, this funding is not included in E.ON’s community
investments.
In order to better coordinate Group-wide and regional activities as well as
the E.ON Foundation’s engagement and to increase its social impact, we
bundled E.ON SE’s and the E.ON Foundation’s activities and linked them
more closely. The aim is to ensure that responsibility for content
coordination, decisions on projects, and process design lies in one hand.
Corporate Volunteering
In 2024 employees were again actively involved in non-profit projects in all
regions in which E.ON operates. In total, 3 699 E.ON employees
performed 25 514 hours of volunteer work in 2024. This figure may
include double counting of employees who volunteer more than once.
Data Protection, Cybersecurity, and Product Safety [•]
E.ON processes personal data of a variety of stakeholders, primarily
customers, employees, enterprise partners, and suppliers. We have a
Group-wide data protection organization, which we continually improve.
E.ON evaluates its processing activities on an ongoing basis in order to
comply with applicable regulations and to protect data subjects’ rights and
personal data. In addition, E.ON has a broad-based cybersecurity
organization whose aim is to efficiently protect systems and data
regardless of where they are accessed from, which devices are used, and
where the data are processed. In particular, the expansion of digital
systems in our critical infrastructure must be designed so that our in-house
users as well as our customers and suppliers can trust them and so that
negative effects such as outages of any kind are avoided. Safeguarding all
company information—in oral, written, and digital form—is crucial in order
to prevent damage to E.ON’s competitive position, brand, and reputation.
E.ON offers its customers digital solutions (like the E.ON Home app and the
E.ON Drive app) as well as a steadily expanding range of products installed
at their premises. This includes solar and battery storage systems, heating
systems (including heat pumps and boilers), and electric vehicle charging
points. The safety of these products is essential for E.ON to ensure that our
customers can use them without concern, to retain customers’ trust, and
continue to serve them successfully.
E.ON’s Approach
E.ON takes compliance with the General Data Protection Regulation
(“GDPR”) and national regulations seriously and aims to protect the rights
of natural persons—above all customers, employees, suppliers, and other
third parties—when processing their personal data. In principle, all natural
persons may themselves determine the extent to which their personal data
are processed. E.ON Group’s Data Protection Management System
(“DPMS”), which was established in reference to IDW PS 980, an audit
standard for compliance management systems, describes the minimum
standards for maintaining data protection in the E.ON Group. The DPMS is
implemented by the individual units and, at the same time, serves to ensure
a structured, coordinated, and consistent approach to data protection. The
DSMS was extensively revised and was made available to E.ON employees
through in-house channels.
In addition, the Group Data Protection Officer (“DPO”) designed a data
protection roadmap. The roadmap defines specific measures and tasks for
each unit to implement for each of the DSMS’s elements. These measures
are derived from the findings of our data protection risk landscape (such as
quarterly reporting), the type of operational business in question, and legal
requirements and changes. The data protection roadmap’s specific
measures and tasks help ensure the DSMS’s effectiveness, compliance
with the GDPR, and a focus on current legal and factual developments
and/or risks, even as framework conditions evolve.
Data protection is an ongoing task amid rapidly evolving technologies and
practices. Using the plan-do-check-act (“PDCA”) method enables E.ON to
continually improve these processes (for more information, see “Goals and
Performance Review” below). These improvement activities continued in
2024.
In 2024 E.ON began to fundamentally revise individual guidelines that are
part of the DSMS as well as other handouts that serve to effectively
implement data protection and to publish some of the revised versions.
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To protect all company information, E.ON has in place an Information
Security Management System (“ISMS”) based on the standards of the ISO
2700x series, widely recognized international standards for information
security. The ISMS is certified for those parts of the organization where it is
required by law. E.ON works to ensure and maintain the confidentiality,
availability, and integrity of its information resources. This includes
monitoring infrastructure, vulnerabilities, and threats as well as detecting
and responding to security events like cyberattacks. For this purpose, in-
house and outside experts conducted extensive security tests of the
systems on a regular basis. In 2024 E.ON updated its cybersecurity
strategy and fundamentally restructured and expanded its cybersecurity
rules. The purpose of this expansion was also to counter cyber-attacks and
the resulting adverse impact on systems, energy networks, and energy
equipment. The scope of this new cybersecurity strategy—including all its
policies, standards, directives, and local instructions—applies to the entire
E.ON Group and thus covers all aspects of cybersecurity at E.ON. It starts
with our mission statement and organizational setup, which are covered in
our Cybersecurity Functional Policy, as well as our rules and regulations for
all employees, which are described in the Cybersecurity People Guideline.
Our Information Security Standards define more specific rules and
requirements, and our Cybersecurity Guidelines explain in detail how these
requirements are to be met. E.ON will address this by improving security
awareness, identity and access management, cloud security, and new
detection and prevention capabilities.
E.ON extend its standards for occupational health and safety to the
products it offers customers. The Company sets uniform standards to
ensure that its products are safe throughout their life cycle, from
development to recycling. Our ambition is to comply fully with all existing
laws and regulations. This applies likewise to applicable safety laws and
regulations. Due to confidentiality constraints and the sensitivity of such
data, E.ON cannot provide information about complaints concerning data
breaches, regardless of whether these complaints were substantiated or
not.
Guidelines and Policies
E.ON’s DSMS defines roles and responsibilities in a uniform manner across
the whole Group. The information security standards introduced in 2018,
which are based on the ISO 2700x series of standards, apply to the entire
Group as well. They enable E.ON employees to design and operate new
solutions with the required level of cybersecurity. For E.ON it is important
to protect technology, data as well as customers, critical infrastructure,
and society from negative consequences. E.ON’s People Guideline
Cybersecurity summarizes the most important cybersecurity rules relevant
for all employees and accessible in our intranet.
Organization and Responsibilities
Each unit in the Group is responsible for complying with data protection
regulations, above all the GDPR, and implementing the DPMS. E.ON has
established processes across the Group to comply with data protection
requirements, for example to respond to data subject inquiries and report
data protection breaches. This set of processes also provides guidance
when individual units implement the necessary processes.
The units are responsible for responding to all requests from data subjects,
such as access to information on data processing, rectification, erasure, and
data portability. The units’ systems and policies must also comply with
their national data protection regulations and those of any other countries
where they operate. Where required by law, the units have appointed Data
Protection Officers (“DPOs”). The units’ DPOs work closely together and
share information with the Group DPO on a regular basis, in particular on
information relating to legal and regulatory developments and fines, the
protection of data subjects’ rights, relations to third parties, fulfilment of
documentation duties, and correspondence with supervisory authorities.
E.ON’s Group DPO is responsible for higher-level data protection issues at
the Group level. In addition, the Group DPS informs the units’ DPOs on a
regular basis about relevant developments relating to data protection by
means of periodic information-sharing meetings. This and other
information is disseminated by email and through internal communications
channels, such as the corporate intranet. Furthermore, the Group DPO
reports periodically to the Cybersecurity and Data Protection Council,
which also includes Management Board members, and to the Supervisory
Board’s Audit and Risk Committee.
The Cybersecurity function prevents the danger that technology and
information would have an adverse impact on E.ON’s overall business or its
customers’ trust in E.ON’s customer solutions like E.ON Home and Drive.
This function’s tasks include designing a Group-wide cybersecurity
strategy, monitoring its implementation, and coordinating the
cybersecurity organization across E.ON. E.ON’s Chief Information Security
Officer (“CISO”) oversees the Group-wide cybersecurity organization and is
assigned to the Management Board’s digital remit. His responsibilities
include formulating E.ON’s cybersecurity strategy and monitoring its
implementation. The Group-wide cybersecurity organization includes
Information Security Officers (“ISOs”) appointed by the business units.
They report to the CISO as well as to their unit’s board on all relevant
matters arising in their organizations. The CISO reports on a regular basis—
as well as ad hoc in the event of serious security incidents—to the E.ON SE
Management Board and the Supervisory Board. These vertical and
horizontal reporting pathways ensure transparent and consistent
reporting.
E.ON’s regional units know their customers, their products, and the local
market conditions and requirements. Consequently, their Product
Development teams take the lead in product safety, supported by their
unit’s Health, Safety, and Environment (“HSE”) department. They also work
closely with several divisions and departments at Corporate Functions,
primarily B2C/B2SME Solution Management, Innovation, HSE, and
Sustainability.
Specific Actions
To the degree possible, all new E.ON Group employees receive data
protection training during their first year as part of their onboarding
process. In addition, E.ON conducts specific training for entities and
departments—such as call centers and sales organizations—that process
personal data on a bigger scale. In addition, employees use an eLearning
module to refresh their data-protection knowledge annually. By the end of
2024, 86 percent of employees had completed the module.
E.ON uses eLearning, phishing simulations, and in-house workshops such
as live hacking demonstrations to familiarize its employees with
cybersecurity risks and their obligation to keep confidential company
information secure. To enable its employees to handle information
properly, E.ON uses a classification tool, including electronic document
labelling, which was introduced in 2022. E.ON conducts an ongoing
phishing awareness campaign that involves simulated phishing emails sent
to employees several times a month. In addition, E.ON periodically
performs penetration-testing for crucial services in order to further harden
key services against cyberattacks. In addition to reinforcing employee
awareness, cybersecurity is an essential part of our energy system, which
is becoming more important as our infrastructure is digitalized and new
innovative components are integrated into it. The more players that
connect to our infrastructure and actively participate in the energy system,
the more complex it becomes. If our customers want to connect their solar
panels or heat pumps to the grid, for example, we need to ensure this
connection’s confidentiality, availability, and integrity. The next chapter
describes other cybersecurity measures.
E.ON takes a variety of steps to address health and safety issues across the
entire life cycle of its products. During product development, E.ON closely
observes current standards and guidelines and monitors emerging issues.
The regional units test all products, including eMobility solutions, for
CE/UKCA conformity in their own test labs or have them tested in E.ON’s
test lab in Essen or by outside testing firms. Products that are CE-
compliant meet EU-wide requirements for safety, health, and
environmental protection, while UKCA-compliant products meet the
British market’s compliance requirements. This provides E.ON with a
comprehensive assessment of risks, their likelihood, and other potential
implications. Contractors who install and maintain products on E.ON’s
behalf must undergo prequalification prior to hiring to ensure that they
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meet specific standards and values. In addition, E.ON engages in ongoing
dialog with its contractors and trains them to ensure that they adhere to all
requirements and the latest technical standards. Safety training, for
example, is mandatory for all installers of solar and battery solutions in
Germany. If a product has a safety-related issue, E.ON needs to be able to
recall it immediately. E.ON therefore checks and tracks all hardware
product changes so that it can contact customers immediately in the event
of safety-related issues. We work to continually improve these processes.
Whenever E.ON is the product manufacturer or deemed to be such, the
Company is legally obligated to comply with a number of requirements.
These include establishing a local system to ensure product traceability and
putting in place a plan for corrective measures. Other requirements include
product certification, CE/UKCA labeling, the issuance of E.ON’s own
EU/UKCA Declaration of Conformity, and the creation and maintenance of
a product’s technical documentation. In the event of safety-related issues,
E.ON immediately informs the appropriate market surveillance agency
about the issue and the intended corrective measures, such as withdrawal,
warning, and recall. E.ON is also obligated to take necessary corrective
actions.
Goals and Performance Review
The recurring PDCA cycle results in the DPMS’s processes being
continually planned, implemented, managed, and improved. This enables
E.ON to permanently monitor the DPMS’s effectiveness, proactively and
repeatedly look for potential blind spots, and take action if the need for
improvement arises. E.ON units report on the status quo of their
compliance with the GDPR on a quarterly basis. The review also includes
regular assessments by Group Audit. The units implement Group Audit’s
recommendations in a timely manner.
E.ON assesses the maturity of its ISMS domains regularly and reports the
findings to the Cyber Security and Data Protection Council on a quarterly
basis. E.ON defined a minimum maturity level for all areas and units. If
deficiencies or improvement potential are identified, E.ON adjusts its
cybersecurity roadmaps accordingly. The purpose of these adjustments is
principally to counter possible adverse impacts on systems, energy
networks, and energy equipment.
Product safety incidents that occur are documented at the unit whose
product was involved. The investigation and analysis of such incidents help
us identify their causes and determine how to prevent them in the future.
Business Resilience and Security Management [•]
E.ON places great emphasis on the reliability of the energy supply. We
work continually to ensure that our infrastructure and our customer
solutions are safe, secure, and resilient to operational disruptions. In crises,
it is important for E.ON to respond swiftly and handle the situation
professionally.
The repercussions of the war in Ukraine continued to present a challenge in
2024. We face, among other things, a generally abstract and increased
hybrid threat.
E.ON’s Approach
E.ON conducts comprehensive business resilience and security
management and has minimum requirements for physical security as well
as crisis and business continuity management. Despite all the measures
taken, the Company cannot rule out the possibility of crises caused by
natural disasters, human or technical failure, cyberattacks, or other
incidents. That is why we have detailed emergency plans and a Group-wide
crisis organization with specialized local and cross-divisional teams that
conduct exercises on a regular basis. This approach has proven its worth in
past crises.
Guidelines and Policies
E.ON’s Business Resilience and Security function policy, which is approved
by the E.ON SE Management Board, defines responsibilities and minimum
requirements that are binding for all business units. It also provides
recommendations for conducting effective business resilience and security
management. The policy encompasses physical security, emergency and
crisis management, business continuity management, and travel security.
These requirements make it possible to swiftly recognize and manage
unpredictable and complex situations that could have a significant impact
on E.ON’s business, assets, stakeholders, and/or reputation. If necessary,
the central Business Resilience function supports the business units in
meeting the defined minimum requirements and continually adjusts these
requirements in line with the threat situation.
Organization and Responsibilities
Ultimate responsibility for preventing and managing crises lies with the
E.ON SE Management Board. Strategic implementation of physical security
as well as crisis and business continuity management is carried out by the
Business Resilience & Security function, which is part of the Legal,
Compliance & Security department. With the exception of travel security,
operational implementation at the business units is conducted as
decentrally as possible, namely by their respective business resilience
organizations, which are responsible for meeting Group-wide minimum
standards. E.ON also has a comprehensive crisis management
organization. The central reporting office is the central reporting point for
crises and emergencies.
Specific Actions
To be able to respond quickly and adequately to crises, E.ON conducts
several realistic crisis simulations and training sessions each year. In 2024
E.ON conducted several Group-wide crisis simulations in national and
international environments as well as a variety of local crisis exercises at
the business units. This is supplemented by ongoing training and
continuing education for designated crisis management teams. In addition
to crisis management, the Business Resilience & Security function takes a
variety of steps to enhance E.ON’s long-term operational resilience. The
main activities in 2024 were to:
• further harmonize and update in-house guidelines, particularly those
that interface with cybersecurity
• expand and further develop Business Continuity activities
• strengthen E.ON’s security culture by conducting an awareness
campaign that featured an eLearning module
• deploy and introduce central digital tools in line with the Group’s
digitalization strategy
• review our strategic orientation and focus, particularly amid the current
security and regulatory environment.
Goals and Performance Review
E.ON relies on valuable security expertise—of its own experts as well as
outside service providers—and has effective mechanisms and services to
continually ensure and improve its operational resilience and security. E.ON
has set the following objectives for this purpose:
• Proactive crisis management: identify crises at an early stage and
respond to them effectively, conduct controlling and training sessions on
a regular basis, use insights from crises.
• Business continuity management: deal with emergencies, ensure the
continued operation of critical activities, conduct business impact
analyses on a regular basis, update and test plans and measures.
• Travel security: minimize risks to employees when travelling and at a
workplace, promote digital solutions.
• Physical security: protect employees and assets by analyzing security
threats and sharing the findings and having up-to-date security plans
and services.
The focus in 2024 was on sensitizing employees to business resilience and
security issues and on collaboratively sharing information in E.ON’s
business resilience and security community. Cross-departmental
involvement and engagement with business resilience raised the visibility
and also helped sharpen the profile of the Business Resilience & Security
function.
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Crisis Prevention at PreussenElektra
PreussenElektra (“PEL”) is only allowed to operate a nuclear power plant
(“NPP”) if it can demonstrate that it has taken all practicable steps to
prevent security- and safety-related incidents. PEL demonstrates its
compliance on an ongoing basis to the relevant authorities.
In 2024 there were no incidents that adversely affected the security and
safety level at PEL’s NPPs. They remained at the normal security and
safety level adjusted to reflect dismantling operations. On average, ten to
15 reportable events per year occur. PEL conducts periodic reviews in
which it discusses the findings derived from incidents with the responsible
parties of the NPPs being dismantled.
PEL communicates incidents and measures to state and federal authorities,
regularly conducts statutory emergency and crisis exercises, and keeps the
E.ON Group’s Business Resilience & Security function informed.
Governance
Compliance and Anticorruption [+]
Complying with the law and company rules as well as preventing,
detecting, and immediately rectifying rule violations at our company is of
crucial importance to E.ON. Customers, business partners and other
stakeholders should not be deceived or deliberately harmed. We are
committed to ensuring that laws and company rules are strictly observed
and that compliance and integrity are systematically promoted as core
elements of our corporate culture. This is the only way we can maintain
and strengthen the trust of our stakeholders in the long term. E.ON
therefore takes potential compliance violations very seriously. If they are
substantiated, we systematically pursue and penalize them. E.ON’s
approach to compliance is applicable for all business units and Corporate
Functions and extends to suppliers as well.
Information on compliance notices can be found in the “Progress and
Measures” section below.
E.ON’s Approach
E.ON is committed to combating corruption in all its manifestations and
supports national and international efforts directed against it. The
Company’s participation in the United Nations Global Compact
underscores its rejection of any form of corruption. The E.ON Management
Board has the ultimate responsibility for ensuring that E.ON conducts its
business legally and at all times refrains from criminal practices in
achieving its business objectives. To ensure this for all business units, E.ON
has established a central Compliance function. Its task is to support the
E.ON Management Board in its responsibility to prevent, detect, and
eliminate corporate crime.
E.ON has in place a compliance management system (“CMS”) to mitigate
the risk of compliance violations. The CMS enables E.ON to identify and
analyze compliance risks, design a risk-adequate compliance program, and
expand the Company’s compliance organization.
Guidelines and Policies
Our Code of Conduct and our Supplier Code of Conduct (both of which are
available in the languages of all countries in which we operate) focus on our
guiding principle, “Doing the right thing.” They provide easy-to-understand
guidance for all areas that are relevant to E.ON. These include human
rights, anticorruption, fair competition, and legally compliant relationships
with business partners. The E.ON Code of Conduct also contains an
integrity test that employees can use to check whether they are doing the
right thing. All employees are obligated under their employment contract
to act in accordance with the Code of Conduct’s rules. In addition, ten
People Guidelines, which apply to all business units, explain in detail how
employees can be sure that they are doing things right. Our Code of
Conduct is highly regarded by experts. The quarterly magazine published
by the German Association of Compliance Managers (German abbreviation:
“BCM”) last reviewed our Code of Conduct in 2021 and awarded it the
highest rating among all DAX companies.
An important People Guideline that supports the Code of Conduct
addresses anticorruption. It contains a decision-making aid to indicate
when accepting or granting offers or gifts is permissible, potentially
problematic, or forbidden. If, for example, a gift’s value exceeds a certain
threshold, authorization is always required from the local Compliance
Officer, who reviews the gift and decides whether it is permissible or not.
Particularly strict requirements apply to invitations and gifts from public,
elected, or government officials and their representatives. The Code of
Conduct clearly states E.ON’s prohibition against Company donations to
political parties, political candidates, political officeholders, or
representatives of public agencies.
E.ON’s Compliance Function Policy defines basic compliance structures,
roles, and responsibilities. All compliance policies are reviewed on a regular
basis—at least every two years--to ensure that they are comprehensible,
readable, and, in view of current legislation, up to date.
Organization and Responsibilities
E.ON refines and optimizes its CMS on an ongoing basis. Pursuant to the
Compliance Function Policy, we have established a Group-wide
organizational setup for this purpose. It consists of the Chief Compliance
Officer (“CCO”), the Global Head of Compliance & Data Protection along
with his Group Compliance team, and the business units’ compliance
officers. The CCO reports on a quarterly basis to the E.ON Management
Board and to the Supervisory Board’s Audit and Risk Committee on the
CMS’s effectiveness and current developments and incidents. In the event
of serious incidents, the Management Board and the Audit and Risk
Committee are informed without delay. Suspected fraudulent activities
directed against the Company are investigated by Group Audit. The central
Group Compliance and Data Protection function is responsible for
investigating fraud within the Company.
Specific Actions
One focus in 2024 was to conduct confidence-building measures to remind
E.ON managers of their function as role models. Throughout the E.ON
Group , welcome talks were held with new managers within their first 100
days in order to build trust with their unit’s compliance officers and to
remind them of their responsibility to help create a culture of integrity. In
addition, a discussion forum between top executives, which began with a
welcome address from the EON SE Supervisory Board Chairman, gave
employees the opportunity to ask specific questions and discuss dilemmas.
Furthermore, E.ON continues to use a variety of tools to identify the areas
of activity where the risk for certain compliance breaches is particularly
high. Such compliance risk assessments (“CRAs”) are conducted on an
ongoing basis and processed digitally. CRAs employ various methods,
ranging from spreadsheet-style questionnaires to personal (and
confidential, if applicable) discussions with executives and employees.
Based on the findings, Group Compliance determines whether specific
measures need to be taken to amend and refine the CRAs in order to
appropriately address any (new) potential risks identified.
In addition, Group Compliance continually engages in dialog with the
Compliance Officers appointed by local units’ management and monitors
their work. If employees suspect misconduct or a violation of laws or
company policies, they are instructed to report it. For this purpose, they
may use—if they prefer, anonymously—internal reporting channels or an
IT-based whistleblower system. The system meets the requirements of
Germany’s Whistleblower Protection Act. It is available Group-wide and
can be accessed via the E.ON website or by telephone. Not only E.ON
employees, but also business partners, their employees, and other third
parties can contact the hotline confidentially. Group Compliance forwards
the information to the relevant department or unit.
E.ON wants to ensure that its compliance standards are adhered to in its
supply chain as well. We therefore subject potential suppliers to a
compliance check to assess whether they act in accordance with our values
and principles. To ensure that they meet our compliance standards, we also
conduct a prequalification process to verify potential suppliers’ identity.
This includes, for example, determining whether a supplier appears in the
media in connection with compliance issues such as corruption or on
official sanction and terrorism lists. Prequalification is mandatory for all
new suppliers. The Human Rights and Supply Chain Management chapter
provides more information on the supplier onboarding process.
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Our Know Your Customer (“KYC”) principle also defines minimum
requirements for certain business partners and scenarios, other than
suppliers. The KYC check, which is part of our large-scale digitalization
strategy, is an IT-supported workflow that helps us assess counterparties’
integrity and avoid legal, regulatory, and reputational risks related to
compliance issues such as corruption, money-laundering, tax evasion,
violation of economic sanctions, and terrorism financing. It is covered in our
Know Your Counterparty People Guideline, which we again updated in
2024.
Goals and Performance Review
We continuously evaluate the CMS’s effectiveness to ensure that E.ON is
able to prevent, detect, and take appropriate remedial action against illegal
or criminal conduct or other rule violations. The CMS’s effectiveness is
monitored by the E.ON Management Board and also Group Audit. The
latter, an independent entity, is the third line of defense of E.ON’s CMS.
The CMS’s effectiveness depends on how serious and credible our
compliance efforts within the Company are. This is reflected by, for
example, the resources we devote to compliance as well as the quality,
control, and monitoring of our measures. Evaluating E.ON’s compliance
culture and the perception of its compliance is also relevant for the CMS’s
effectiveness. Special consideration is given to violations that lead to an
internal audit. The audit determines whether a violation resulted from
negligence or misconduct by an individual or individuals or from
shortcomings in the CMS. We use the findings to implement measures to
avoid similar incidents in future. The Management Board and the
Supervisory Board’s Audit and Risk Committee are convinced that the CMS
was again effective in 2024. Their assessment was based in part on audits
as well as surveys of employees and stakeholders.
E.ON’s CMS is structured and follows a uniform roadmap with defined
steps for refining our business units’ compliance measures. All Compliance
Officers must present the status of their unit's compliance roadmap
regularly to their board and to Group Compliance. The implementation of
the compliance roadmap in 2024 proceeded as planned.
Progress and Measures [x]
E.ON divides compliance reports into four categories: business integrity
concerns, fraud against the Company concerns, HR-related concerns, and
other concerns related to the Code of Conduct. The resulting investigations
found that none of the incidents reported was serious.
Fines for Non-compliance
E.ON paid a total of about €687,512 in fines for non-compliance with laws
in 2024.
Human Rights and Supply Chain Management [•]
Our corporate responsibilities include respect for human rights in all areas
of our business as well as in our supply chain. E.ON therefore expects its
suppliers worldwide to meet minimum standards in their environmental,
social, and governance (“ESG”) performance, including in relation to human
rights.
E.ON’s Approach
E.ON takes its responsibilities seriously and is therefore committed to
doing business in a compliant way, respecting human rights, protecting the
environment, and ensuring proper work conditions. E.ON expects that its
suppliers are likewise committed to high ESG standards and has processes
in place to ensure that they do.
E.ON is convinced that good processes and measures can only be
developed if different perspectives are considered. Engaging in dialogue
with stakeholders and participating in industry initiatives help us pay
particular attention to human rights issues. For example, E.ON is a member
of econsense, a network of Germany-based multinational companies
dedicated to promoting sustainable business development and respect for
human rights. E.ON also participates in a working group at the German
Compliance Institute (German acronym: “DICO”) focusing on the same
objectives. E.ON has been participating in the German Energy Sector Dialog
since January 2023. This multi-stakeholder dialog consists of relevant
players in the energy industry, civil society organizations, and the German
federal government and focuses on the German energy industry’s human
rights and environmental risks along its global supply and value chains in
order to improve the human rights and environmental situation. Our
participation in the dialog’s working groups enables us to look at different
priorities and have contact with local stakeholders and communities in
selected supply chains
Guidelines and Policies
E.ON’s Human Rights Statement acknowledges the International Bill of
Human Rights and the Declaration on Fundamental Principles and Rights
at Work of the International Labour Organization (“ILO”) of the United
Nations (“UN”) and its fundamental conventions. The rules and regulations
E.ON follows also include the European Convention for the Protection of
Human Rights and the principles of the United Nations Global Compact
(“UNGC”). E.ON’s Human Rights Statement provides an overview of our
risks and the measures taken to address them and refers to E.ON’s own
policies, such as the Code of Conduct for employees. The Code of Conduct
(more information can be found in the Compliance and Anticorruption
chapter) obliges all employees to contribute to a non-discriminatory and
safe work environment and to respect human rights. Other guidelines and
policies are the responsibility of the individual departments and support the
implementation of suitable preventive measures. These are described in
the chapters entitled Environmental Management, Occupational Health
and Safety, and Compliance and Anticorruption. E.ON’s Human Rights
Statement is published on the E.ON website.
The Supplier Code of Conduct defines standards for human rights, working
conditions, environmental protection, and legally compliant, honest
business practices that E.ON requires its suppliers to meet.
The E.ON Supply Chain Function Policy describes the mandate and
organizational setup of the Supply Chain function. The function
encompasses the management of procurement processes, activities,
policies, tools, and supplier relationships for all units to which the policy
applies. In addition, the Function Policy (in conjunction with the Supply
Chain Handbook) defines Group-wide principles, processes, and
responsibilities for non-fuel procurement by the above-mentioned units.
Excluded from this are the special cases on a specific list (for example
energy and fuel procurement, financial and real estate transactions, and
taxes), for which dedicated measures were implemented. These measures
included formulating a Letter of Expectations, which is based on our Code
of Conduct, that summarizes our expectations of certain business partners
who are not part of our standard supply chain, such as in the banking and
insurance sectors.
Number of Notifications Received on Potential Compliance
Violations
2024
20231
Business integrity concerns2
61
18
Fraud against the Company concerns3
179
130
HR-related concerns3
224
125
Any other concerns5
107
193
Total
571
466
1 Previous year's figures have been adjusted due to a change in the data collection methodology.
2 Such as potential illegal activity, violation of law and policy, corruption, antitrust, business partner
compliance, and/or insider trading in E.ON shares
3 Such as theft, embezzlement, and occupational fraud
4 Conflict of interest, mobbing, sexual harassment, discrimination, unfair employment practices, and
so forth
5 Any other Code of Conduct-related topics
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Organization and Responsibilities
The role of Chief Human Rights Officer is held by E.ON’s General Counsel
and Chief Compliance Officer. He is responsible for monitoring our human
rights risk management system and reports on it to the Management
Board on a regular basis. He is also a permanent member of the
Sustainability Council. Staff in the Sustainability department and the Legal
Affairs, Compliance and Security division deal with human rights issues,
such as changes in legislation. Depending on the issue, the Chief Human
Rights Officer can involve the Sustainability Council or the E.ON
Management Board.
The Human Rights Center of Expertise, which is part of the Sustainability &
Climate department, ensures that legal requirements are fulfilled across all
divisions and units. Furthermore, it implements and maintains our human
rights risk management system, conducts periodic risk analyses of our own
business as well as our supply chain, and reports on them. It is also
responsible for Group-wide complaints management and exchanges
information with external stakeholders on topics relevant to human rights.
In addition, it keeps the Chief Human Rights Officer informed about current
developments and incidents and advises him on upcoming activities and
decisions.
All employees of Group units are responsible for ensuring that
requirements are met at our own company. The Supply Chain division deals
with the full range of ESG aspects along the supply chain. It carries out the
related tasks in observance of legal requirements as well as company
policies, including HSE and sustainability standards.
Risk Management pursuant to the Supply Chain Due Diligence Act
We conduct periodic and ad hoc risk analyses for our own business and for
our supply chain in order to identify human rights and environmental risks
at an early stage. The analyses have two stages. First, we use publicly
available indicators and sources to assess the human rights and
environmental risks defined by the Supply Chain Due Diligence Act in line
with country and industry risks. We also consider risks associated with
specific procurement categories and use a digital solution for ongoing risk
assessment of our own facilities as well as our suppliers. Our own facilities
have been integrated into this digital solution since 2024. Information
received through our complaints process is incorporated into risk analysis,
as are our existing measures to reduce risk potential. For our own business,
we have identified the gross risk of occupational health and safety as a risk
inherent in our industry. The associated preventive measures are described
in the Environmental Management and Occupational Health and Safety
chapters. For our suppliers and our deeper value chain, we have
additionally identified the gross risk of fair working conditions as a risk due
to the complexity of our global supply chains. We have implemented
numerous preventive measures both at our own business and in our supply
chain to ensure that no high net risks arise. An example of one of these
measures is the establishment of a solar and batteries focus group. It
consists of experts from the Procurement, Sales, and Sustainability
departments and provides closer support for these supply chains. We also
address the issue in industry initiatives like Solar Power Europe.
Supply Chain Management
Our upstream value chain encompasses goods and services for operating,
maintaining, and expanding our power and gas distribution networks,
dedicated customer solutions like smart meters and charging stations, as
well as goods and services for our power, heat, and cooling generating
units. We procure power and gas for our Energy Retail business mainly on
energy wholesale markets, on energy exchanges, and over-the-counter
from energy wholesalers.
Our supply chain management for non-fuel suppliers consists of preventive
measures that are interlinked and accompany the supplier in the
procurement process. They are fine-tuned on a regular basis and described
below:
The onboarding process for suppliers is carried out before a contract is
signed. Its steps include self-registration by the supplier, a formal pledge to
comply with the E.ON Supplier Code of Conduct, and a compliance check.
Every non-fuel supplier whose individual transaction volume exceeds
€25,000 must complete this process. Non-fuel suppliers that are not
subject to supplier onboarding must agree to E.ON’s General Terms and
Conditions for Purchase Contracts, which are legally binding. These oblige
non-fuel suppliers, among other things, to comply with the minimum
standards of our Supplier Code of Conduct. This approach’s purpose is to
minimize potential HSE and CSR risks. As of year-end 2024, 99.60 percent
of non-fuel suppliers had completed the onboarding process.
Depending on the transaction volume and HSE risk, suppliers must
complete additional steps, such as answering one or more questionnaires
or completing a supplier audit to check whether the supplier complies with
E.ON’s standards for human rights, working conditions, and environmental
protection. E.ON may also require a supplier to have in place a certified
environmental management system or a health and safety management
system. Suppliers that participate in tenders as part of a public
procurement act do not use the above-described process but instead
follow the qualification procedures required under their country’s laws.
Alongside onboarding, E.ON determines annually which of its non-fuel
suppliers it deems material; E.ON evaluates them on the basis of five KPIs:
quality, commercial aspects, delivery, innovation, and corporate
sustainability, including human rights. E.ON discusses the results with its
suppliers in feedback meetings. During this meeting, E.ON also decides
whether it will require a supplier to take specific improvement measures if
the business relationship is to be maintained.
Our human rights due diligence check covers all of E.ON’s procurement
categories. Potentially risky suppliers must first pass additional checks,
such as a more detailed questionnaire or audit, and agree to make
improvements and provide evidence of their implementation. Through
year-end 2024, more than 5,300 new and existing suppliers answered the
questionnaire, including all high-risk suppliers. Suppliers that have
difficulty answering the questionnaire or providing evidence of their
measures are supported and closely monitored.
E.ON uses a digital solution for ongoing risk assessment of suppliers with
medium and high human rights risk. They are assessed in a variety of
categories, including sustainability, finance, cybersecurity, supply chain
disruption, and compliance. Since the program’s introduction, over
5,700 points of interest (“PoIs”) such as offices and facilities have been
monitored on an ongoing basis, thereby covering 72 percent of E.ON’s
annual spend.
Specific Actions
Multistage Supplier Analysis
In 2023 we conducted a multistage analysis of certain product categories,
including transformers, inverters, solar systems, batteries, and circuit
breakers. The analysis was not only of end products, but also preliminary
stages, including electronic components as well as chemicals and raw
materials used. The findings indicated clear differences between product
categories and thus provided important insights for future measures to
improve sustainability at the product and supplier level. Sub-suppliers have
been included in the digital solution and integrated into ongoing risk
assessment since 2024.
Decarbonization
A first step toward decarbonizing supply chains is to make the current CO2
emissions of purchased goods and services more transparent. E.ON
therefore conducts an annual heatmap analysis of the greenhouse gas
emissions in its supply chains based on third-party emission factors and
cost-based data. We will repeat the analysis on an annual basis. In 2024
we studied the categories with the highest climate impact so that we can
work with suppliers to determine the actual carbon emissions associated
with E.ON’s purchases. We are also talking to our materials suppliers about
switching to zero- SF6 products as early as possible. The Climate
Protection chapter contains more information on our reduction efforts.
Training
E.ON continually improves its eLearning tools for employees, such as the
annual Web training module on human rights, compliance, antitrust law,
and cyber and data security. More than 87 percent of employees had
completed the module by the end of 2024.
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In addition, E.ON trained about 467 Supply Chain employees on respect for
human rights along the supply chain, new aspects of onboarding, and
E.ON’s risk matrix for human rights.
Goals and Performance Review
E.ON’s objective is to avoid violations of human rights, environmental
standards, and its corporate principles. For this purpose, E.ON endeavors to
identify the relevant risks along its value chain. Periodic risk assessments
can help E.ON detect actual or suspected violations. If violations occur, the
Supply Chain Compliance Officer and the respective Supply Chain Director
are notified immediately, and corrective measures are demanded of the
supplier. Implementation is precisely monitored by E.ON. If the situation
does not improve, E.ON terminates its business relationship with the
supplier. No business relationships were terminated for this reason in
2024.
Employees can report possible violations of human rights through internal
reporting channels and the E.ON whistleblowing channels. These consist of
an E.ON whistleblowing system, a whistleblowing hotline, and an E.ON
whistleblowing email address. They are published on our website. The
E.ON whistleblowing system and the E.ON whistleblowing hotline can take
calls and reports in the official languages of all countries in which E.ON
operates. Not only E.ON employees, but also business partners, their
employees, and other third parties can contact the hotline, anonymously if
they wish. The E.ON Rules of Procedure Supply Chain Act, which are also
published on the website, summarize the most important information on
the complaints procedure for human rights and environmental complaints
under the Supply Chain Due Diligence Act. Among other things, the rules
explain that every whistleblower is protected from adverse consequences.
The information is forwarded to the responsible department at Corporate
Functions. Depending on the type and severity of the potential violation,
the Compliance department immediately reports it to the E.ON
Management Board, files criminal charges, initiates its own investigation,
or takes other measures. We held an in-house workshop prior to
implementation to ensure that the procedure is easily understandable and
accessible for all stakeholders. At the workshop, experts from various
functions presented their stakeholders’ views, and access to the E.ON
whistleblowing channels was discussed. We also conducted a Group-wide
survey among our employees on their familiarity with the procedure and
satisfaction with how it is handled. The survey showed that employees are
familiar with and trust the complaints procedure and are satisfied with the
way reports are handled.
The E.ON whistleblowing channels and other (local) reporting channels
received 11 reports of potential human rights violations in 2024. These
were submitted anonymously by employees in our supply chain and in our
own Group. No violations were identified during the investigation of the
reported suspected cases. A Human Resources investigation into a report
from 2023 resulted in the identification of a violation of the Supply Chain
Due Diligence Act at a non-consolidated affiliated Group company. The
misconduct was stopped in the course of the investigation, and the persons
concerned were given individual support.
Excursus: Biomass
E.ON is committed to procuring the fuel for its biomass-fired assets
responsibly and sustainably. Suppliers of solid biomass must, like non-fuel
suppliers, contractually agree to comply with our Supplier Code of
Conduct. A Biomass Policy defines the terms for the purchase of solid
biomass for our Energy Infrastructure Solutions (“EIS”) business. Its rules
ensure that E.ON procures and uses solid biomass in accordance with
applicable EU regulations and E.ON’s sustainability standards. All biomass
suppliers must pledge to respect human rights, safeguard the general living
conditions of persons affected by biomass production, and protect
biodiversity and the environment.
Political Dialog [+]
E.ON actively participates in political debates on issues that affect it. We
use a variety of tools for this purpose, such as media interviews, public
appearances by executives, and information events.
In the E.ON Group, the CEO in particular represents the Company and
advocates its positions and interests to stakeholders. The Management
Board is monitored by the Supervisory Board in accordance with the
applicable legal regulations. The Communications and Political Affairs
department, which is part of the CEO’s area of responsibility, coordinates
the CEO’s policy-related activities. E.ON maintains offices in Berlin and
Brussels for contacts with policymakers, trade associations, and other
stakeholders. E.ON’s policy-related activities are characterized by a high
level of transparency; the individuals involved, topics, and financial
resources are listed in the European Transparency Register under the
identification number 72760517350-57 and in the German Bundestag’s
lobby register under the register number R002309. These entries
transparently disclose the costs of policy-related activities. E.ON does not
make direct or indirect payments to political parties or party-affiliated
organizations.
E.ON is called upon by policymakers and regulatory authorities to
contribute its technical and energy-policy expertise to decision-making
processes. The Company also proactively offers its expertise. This form of
representation of interests is important, because policy and regulatory
decisions have a significant influence on the energy sector. In 2024 policy
discussions on energy issues in Brussels and Berlin focused on the financial
and regulatory conditions for the success and broad acceptance of the
energy transition, its affordability for private consumers and industry, and
the necessary expansion of infrastructure.
We compiled and published a manifesto describing our energy-policy
orientation and positions on the key issues for us. In Germany, the
discussion has begun on the electricity market design, which includes
changes to renewables support, capacity mechanisms to secure the
electricity supply and distributed sources of flexibility. In addition, we have
long called for Germany’s electricity tax for all consumers to be
permanently reduced to the European minimum rate in order to give
additional impetus to the electrification of as many sectors as possible and
thus to enhance energy efficiency and help achieve climate protection.
To highlight flexibility’s relevance for achieving climate targets, system
security, and grid stability, E.ON launched a policy campaign that
introduces positions into ongoing discussions in Berlin. It emphasizes the
role of small-scale demand-side flexibility sources like heat pumps and
electric car batteries. This directly benefits our customers financially and
also enables them to contribute to the energy transition and the stability of
the energy supply.
A key task in the context of the energy transition is to ensure that the
expansion of electricity network infrastructure keeps pace with
developments upstream and downstream. Examples of these
developments include the aforementioned overall greater electrification of
the transport, heating, and industrial sectors on the consumption side and
robust renewables growth on the generation side. We attach great
importance to anticipatory network expansion to enable us to address
these future developments. The aim is to expand our networks in line with
the 2045 target system, the year in which almost no more greenhouse
gases may be emitted. This target-oriented network expansion currently
lacks a sufficient regulatory framework. We are in discussions about this
with political and regulatory decision-makers at both the European and
national level. We assume that this will ultimately make the correctly
dimensioned infrastructure available faster and more cost-effectively—
which will mean an efficient use of resources by E.ON and ensure that
consumers have a reasonably priced electricity supply.
In addition, E.ON participate in a number of discussion forums on energy,
environmental, and climate policy. For example, Leonhard Birnbaum is part
of the European CEO Alliance, an alliance of leading EU-wide business
representatives who jointly discuss ways to further support the EU Green
Deal. He has been a member of the Steering Committee of the European
Round Table for Industry since 2024 and has been President of Eurelectric,
the association of Europe’s electricity industry, since 2023. Eurelectric is an
umbrella organization that represents more than 3,500 European
companies active in electricity generation, distribution, and supply.
Eurelectric’s direct members are national trade associations, including
BDEW, Swedenergy, and Energy UK. Leonhard Birnbaum is a member of
the BDEW Executive Committee and the BDI Executive Committee as well
as Deputy Chairman of the World Energy Council.
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E.ON Integrated Annual Report 2024
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› E.ON’s Climate Advocacy and Associations Report provides an overview
of its policy-related activities as well as the trade associations and
initiatives to which the Company belongs and the key positions it occupies
in them as part of its efforts to promote the energy transition. All of E.ON's
activities and dialog formats are in line with applicable national and
European laws and guidelines for the representation of corporate interests
and responsible lobbying. ‹
Sustainable Finance and Sustainable Investment
Sustainable Finance [•]
The ongoing decentralization, digitalization, and decarbonization of the
energy world requires substantial investments. Debt capital represents an
important financing source for the E.ON Group to implement its strategy.
E.ON’s systematic implementation of its strategy—whose key elements are
sustainability, digitalization, and growth—aims to propel the energy
transition and decarbonization in Europe. Sustainability aspects play an
increasingly important role in many international investors’ decision for or
against a particular investment. Accordingly, E.ON has also systematically
considered sustainability in the structuring of its financing as well.
E.ON’s Approach
E.ON’s sustainability efforts focus on decarbonizing its distribution
networks and energy infrastructure around Europe. It has also set
ambitious climate targets. E.ON wants to support its customers’
decarbonization. It aims to achieve climate neutrality for Scope 1 and
Scope 2 emissions by 2040 and to reduce its Scope 3 emissions by 50
percent by 2050. E.ON issues green bonds to finance or refinance activities
that promote E.ON’s contribution to climate protection. This highlights the
connection between sustainability-oriented business and financing
strategies.
E.ON recognizes the importance of stakeholder engagement and
community involvement as part of its risk management strategy. E.ON’s
Sustainability Council works with outside stakeholders and seeks to forge
partnerships with them. Stakeholders are invited to participate throughout
the development process and E.ON strives to address its short- and long-
term impacts on stakeholder groups. The Sustainability Council advises the
Management Board on engagement with outside stakeholders and
analyzes their trends and expectations. The Company adjusts its
approaches to stakeholder engagement to its regional units’ specific needs.
The “Stakeholder Engagement“ section of the E.ON’s Approach to
Sustainability chapter of this report provides a publicly accessible overview
of company guidelines, principles, and procedures. Our guidelines for
sustainable capital market financing—the Green Bond Framework
described in the next section—are available to outside stakeholders in the
Investors channel at www.eon.com. E.ON conducts ongoing dialog with its
capital market investors, who represent a key outside stakeholder group
for sustainable financing. Their market overview provides E.ON with an
important source of information for ensuring the Green Bond Framework’s
marketability.
Guidelines and Policies
E.ON presented its first Green Bond Framework in 2019 and has been
issuing green bonds ever since.
E.ON’s Green Bond Framework is closely aligned with its sustainability
strategy. The proceeds from green bonds are invested in categories that
help achieve UN Sustainable Development Goals (“SDGs”) 7, 9, and 11.
These categories include electricity networks, renewables, energy
efficiency, and clean transportation. These correspond to the areas
recognized by our Green Bond Principles.
Eligible projects comprise a green portfolio. They are selected on the basis
of strict criteria defined in a framework agreement. We check their
compliance with E.ON’s strategic sustainability targets, EU's environmental
targets, the EU taxonomy’s thresholds and requirements. Projects must
also comply with the do-no-significant-harm principle as well as national,
European, and international environmental and social standards. E.ON’s
annual Green Bond Report, which is published on our website, discloses the
use of funds and, where possible, the impact achieved. Reporting includes:
• Total investments by category
• Projects’ assignment to EU environmental objectives
• Projects’ geographic distribution
• Type of projects finances (examples: assets, investment expenditures)
• Balance of unallocated revenue (if any).
In addition, E.ON’s Green Bond Framework aligned the ICMA Green Bond
Principles and takes into account most of the aspects and requirements of
the proposed version of the EU Green Bond Standard at the time of the last
update of the E.ON Green Bond Framework (December 2021). We review
the framework on an ongoing basis to ensure that it meets current market
standards, capital market investors’ requirements, and E.ON’s current
business profile.
E.ON strives to select projects that do more to address environmental and
social concerns. The net proceeds from bonds go exclusively toward
eligible projects that, pursuant to our Green Bond Principles, have a
positive impact and help achieve global climate targets. It is important,
however, to implement strict measures toward mitigating the potential
environmental and social risks of infrastructure projects. These include
occupational health and safety challenges, impacts on land use and
biodiversity, and relations with nearby communities. E.ON has policies,
procedures, and certifications in place to effectively manage these risks
and ensure that projects meet both environmental and social standards.
Organization and Responsibilities
E.ON’s Green Bond Committee assesses sustainability projects’ eligibility
using the defined sustainability criteria at least once a year. E.ON SE’s Chief
Financial Officer (“CFO”) chairs the Green Bond Committee, which is
composed of representatives from Sustainability, Energy Networks, Energy
Retail, Energy Infrastructure Solutions, and Group Finance as well as other
parties who are invited to serve as subject experts as required.
The committee reviews sustainable assets and investments in view of the
Green Bond Framework’s objectives and criteria. If it becomes necessary to
exclude assets and investments because they no longer meet the eligibility
criteria or have been sold, the committee is also responsible for discussing
their best possible replacement.
Specific Actions
E.ON’s Green Bond Portfolio, a portfolio of qualifying assets in line with the
Green Bond Framework, consisted of assets worth €26.5 billion at year-
end 2024. E.ON’s electricity networks in Germany and Sweden account for
the largest share. The portfolio is limited to certain eligible categories by
our Green Bond Framework, Green Bond Principles, the EU Taxonomy, and
the avoided-emissions methodology.
E.ON had €12.95 billion of green bonds outstanding at year-end 2024,
making it Germany’s second-largest issuer of green bonds. The green
bonds issued in the year under review accounted for €3.55 billion of this
amount. Our Green Bond Reporting in the Investor channel at eon.com
contains a list of our green bonds outstanding at year-end 2024. E.ON will
invest a total of about €43 billion to propel Europe’s energy transition
through 2028. Green bonds in particular are an important tool for this, and
we will continue to use them for our financing in the future.
Alongside its focus on green bonds, E.ON’s corporate financing includes a
sustainability-linked €3.5 billion syndicated credit facility that was
concluded in 2019. After two options to extend the facility were exercised,
its term ends in October 2026. The facility’s credit margin is linked, among
other things, to the development of certain ESG ratings. This gives E.ON
additional financial incentives to pursue a sustainable corporate strategy.
The facility serves as a reliable and sustainable liquidity reserve for the
E.ON Group and can be drawn on as needed.
Goals and Performance Review
E.ON’s sustainable financing follows specific objectives and guidelines:
• Issuance of green bonds: E.ON intends to cover more than 50 percent of
its annual financing requirements with green bonds and to steadily
increase the proportion of its financing raised through green bonds. This
includes all capital market financing (regardless of currency) that our
Green Bond Framework designates as green. Beyond this declaration of
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E.ON Integrated Annual Report 2024
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intent, E.ON has defined no specific targets within the meaning of the
ESRS.
• Allocation of proceeds: Proceeds from green bonds are allocated to
projects that meet the E.ON Green Bond Framework’s eligibility criteria.
The focus is on areas like electricity networks, renewables, energy
efficiency, and clean transportation. E.ON’s annual portfolio-based
allocation reporting contains aggregated information on the use of the
net proceeds from outstanding green bonds and any other green
financing. Ongoing green bond reporting continues to be prepared
according to our 2021 Green Bond Framework and Green Bond
Principles.
• Impact measurement: Impact reporting published annually in the Green
Bond Report on projects financed with green bonds measures the
environmental impact of quantitative indicators like connected
renewables capacity, avoided carbon emissions, installed smart grid
components, and number of charging stations for electric vehicles.
Projects financed by green bonds help achieve the long-term climate
targets verified by the Science Based Targets initiative (“SBTi”)
measured by sustainability key performance indicators defined in impact
reporting. The Sustainability section of the Corporate Profile along with
the Climate Protection and Environmental Management chapters
contain more detailed information.
• Taxonomy alignment: E.ON ensures that projects financed by the
proceeds of the green bonds are aligned with the EU taxonomy for
sustainable activities and with the taxonomy’s technical evaluation
criteria and do-no-significant-harm principles. Any project that is no
longer aligned is removed from our green bond portfolio. Alignment was
confirmed by a third-party audit, which strengthens the credibility of
E.ON’s sustainable finance initiatives. The auditor, Sustainalytics, is an
independent third party that provides an independent assessment of our
Green Bond Framework’s alignment with current market standards, in
particular the ICMA Green Bond Principles, and prepares our second-
party opinion regarding the EU taxonomy. The second-party opinion
Sustainalytics issued in 2021 at the time of our Green Bond
Framework’s most recent update remains valid.
In addition, E.ON appoints an independent auditor annually to review the
use of the net proceeds of the green bonds issued. This involves verifying
these funds’ allocation on an annual basis until they are fully allocated and,
if applicable, describing any significant changes in the proceeds’ allocation.
Three renowned agencies—ISS ESG, MSCI ESG Research, and
Sustainalytics—decide with ESG ratings are linked to the above-mentioned
sustainable syndicated credit facility. These agencies issue new ratings on
an annual basis, which can lead to a contractually stipulated increase or
decrease in the borrowing costs under the syndicated credit facility in the
event of a deterioration or improvement.
ESG Ratings of E.ON [•]
E.ON has been included in numerous ESG ratings for years and has
predominantly received good scores. E.ON strives to maintain this position
by means of continual improvement but does not pursue any specific
targets beyond this. ESG ratings are also a component of the E.ON
Sustainability Index and factored into the Management Board’s
compensation system. The next section takes a closer look at four ratings
that are relevant for E.ON. In addition, the Sustainability Channel at
eon.com shows other ratings and ongoing results.
CDP Climate Change
In 2024 CDP placed E.ON on its A-List for environmental reporting. E.ON’s
current rating is in the Leadership Level.
ISS ESG
In the 2024 evaluation period International Shareholder Services (“ISS”)
rated E.ON C+, meaning we remain in Prime status with decile rank of 3.
MSCI ESG Research
In 2024 MSCI again gave E.ON a rating of AA, which makes us a Leader.
E.ON’s absolute weighted-average key issue score improved from 6.6 to
6.8 points year on year, its industry-adjusted score from 7.5 to 7.6 points.
Sustainalytics
In 2024 E.ON received a score of 20.1 points in the Sustainalytics ESG Risk
Rating, putting it just above the 20-point threshold for medium risk. We
ranked 20th of 105 in the multi-utilities sector.
ESG Asset Management and Pension Assets [•]
E.ON links the provision and investment of pension assets to sustainable
purposes: by financing a company pension plan and by considering
sustainability criteria when making decisions about how the plan’s assets
are invested. E.ON draws, for example, on the Norwegian State Pension
Fund’s research and embargo lists in order to avoid questionable
investments. We also select asset managers whose investment processes
systematically take ESG aspects into account. In addition, E.ON continually
develops its own ESG approach to the investment process in order to adapt
to the latest developments at the Company and in the market.
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Business Report
Macroeconomic and Industry Environment
Macroeconomic Environment
Geopolitical and trade tensions and the associated uncertainties for the
global economy continued in 2024 and were reflected in forecasts for
global gross domestic product (“GDP”) growth, which the OECD put at 3.2
percent in 2024, the same as in the prior year. Despite the aforementioned
challenges, global growth remained stable, whereas inflation continued to
fall, and global trade recovered somewhat.
Economic Developments in the Eurozone
The OECD predicts that the eurozone economy grew by 0.8 percent in
2024 (prior year: 0.5 percent), which was less than expected. This was due
to uncertainties, which weighed on consumption and investment, and to
weaker global demand for industrial goods. The restrictive monetary policy
of recent years was another factor, even though the ECB cut its key
interest rate four times in 2024 to 3.0 percent at year-end. The inflation
rate at the end of 2024 was 2.4 percent.
Economic Developments in Germany
The Germany economy stagnated in 2024 according to the OECD (prior
year: -0.1 percent). The causes are similar to those in the eurozone and are
attributable to sluggish industry, high uncertainty regarding investments,
restrictive financing conditions, and a decline in exports to China. The
inflation rate at the end of the year was 2.4 percent, 0.6 percentage points
higher than the 1.8 percent forecast in September. The increase was due to
higher prices for food, services, and other items.
Development of Energy Prices
Geopolitical events played a crucial role in the development and volatility of
gas and power prices across Europe in 2024. This is of particular
significance for E.ON and its procurement of power and gas on wholesale
markets to serve its customer portfolio. The market experienced significant
volatility due to increased risks to energy supplies from Russia and
uncertainty relating to the transport and transit of residual Russian gas
deliveries through Ukraine. Markets reacted to geopolitical tensions in the
Middle East as well.
Energy prices at the beginning of the year continued their decline from the
fourth quarter of 2023. In late February, year-ahead gas futures at the Title
Transfer Facility (“TTF”), a virtual trading point for gas in the Netherlands,
declined by €6 relative to the start of the year to €27.4 per MWh. German
year-ahead baseload power futures fell by €23 over the same period to
€68.6 per MWh. This ongoing decline was amplified by high inventory in
Europe’s gas storage facilities, which reached record-high levels of more
than 58 percent at the end of the 2023-24 winter season. This downward
trend began to reverse in late February and early March. In March energy
prices were also supported by additional sanctions, which made it more
difficult to export energy from Russian sources to the global market. This
increased price risks, which was reflected in rising prices. In addition, the
increase in Russia’s attacks on Ukrainian energy infrastructure—including,
for the first time, attacks on gas storage facilities—led to more volatility
and risk mitigation in the form of price increases on energy markets.
Markets remained highly volatile in the second quarter due to more
Russian attacks on Ukraine’s energy infrastructure and speculation over
the future of Ukrainian gas transit. Gas and power prices spiked in mid-
May. TTF year-ahead gas futures almost reached €40 per MWh, and
German year-ahead baseload power futures exceeded €100 per MWh.
European energy markets are more dependent on LNG deliveries because
of the significant decline in the supply of Russian pipeline gas over the last
three years. They therefore now tend to react to global events much more
than in the past. For example, the market also experienced greater volatility
because of the uncertain LNG supply situation caused by developments in
other basins like Malaysia and Australia. Moreover, the Atlantic hurricane
season was particularly strong in 2024, although this did not lead to any
major or prolonged disruptions to LNG deliveries from the Gulf of Mexico.
Following a brief stagnation in gas prices and a limited decline in forward
power prices driven by weak carbon prices, in late July and early August
geopolitical developments put even more upward pressure on prices.
Anticipation of heavy fighting around the last remaining Ukrainian
interconnection point for Russian gas again pushed the prices of year-
ahead gas and power futures to 2024 highs again. TTF year-ahead gas
futures traded at around €42 per MWh in mid-August, 50 percent higher
compared with the low from February. German year-ahead baseload
power futures again moved above €100 per MWh for a brief period.
Middle East tensions and the future of Russian gas transit through Ukraine
remained the decisive issues for energy markets in the second half of 2024
as well. In addition, in the fourth quarter—and thus the start of the heating
season—the weather was another determining topic on markets.
Inventories in Europe’s gas storage facilities were around 40 TWh, or 4
percent, lower at the end of October than at the same time in the prior
year.
In summary, the development of gas and power prices in 2024 was driven
by a combination of weather events, supply disruptions, and geopolitical
events. Energy markets experienced significant fluctuations due to several
factors, including unplanned outages, extended maintenance work,
ongoing conflicts in the Middle East, and the war in Ukraine. These factors
led a volatile energy market through the year, with prices movements
responding to impulses and risks, even those that did not materialize. In
principle, E.ON endeavors to procure energy with foresight in order to
ensure fair prices for customers and avoid short-term price fluctuations.
Energy Policy Environment
Global
The questions of by what means and how fast climate change needs to be
slowed shaped the global energy policy debate in 2024 as well.
At the UN Climate Change Conference COP29 in Baku, Azerbaijan, in
November 2024, heads of state and government from almost 200
countries met and adopted a new framework for the international financing
of climate protection and adaptation to the consequences of climate
change. It calls for the annual contribution, primarily from industrialized
countries, to be increased to at least $300 billion by 2035. No progress
was made on new resolutions for phasing out fossil fuels and reducing
greenhouse gas (“GHG”) emissions.
Europe
The current energy policy debate in Europe and Germany is shaped to a
large extent by questions of affordability. Financing the energy transition
requires considerable investments, whose financing is, however, not
secured. Public funding is insufficient, and the energy industry’s financial
strength and debt capacity are limited in the current regulatory
environment. Private investment can be mobilized if projects are
economically viable and can deliver the necessary returns. This applies in
particular to foresightful investments in network expansion and hydrogen
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E.ON Integrated Annual Report 2024
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infrastructure. Access to capital must therefore be made easier, for
example by means of a fully developed capital markets union.
Following the European elections in June 2024 and Ursula von der Leyen’s
reelection as Commission President, the EU’s priorities are therefore also
shifting toward competitiveness and market integration. A Clean Industrial
Deal is intended to serve as a key lever and is likely to be considerably
influenced by Mario Draghi’s report on EU competitiveness, which
advocates closing innovation gaps, reducing energy costs, and enhancing
security of supply. Draghi’s recommendations include striving to catch up
with the United States and China technologically, combining
decarbonization and competitiveness, and establishing a capital markets
union to harness private capital. Although we share many of Draghi’s
assessments, we believe some proposals have potential complications—
such as another review of the electricity market design—which could
hamper rapid progress.
The EU Grid Action Plan presented by the Commission in November 2023
is a comprehensive package of measures to propel the modernization and
expansion of Europe’s energy infrastructure. The plan focuses on financing,
optimizing the regulatory environment, and accelerating approval
procedures for electricity network expansion. These are key points for
implementing the energy transition while ensuring security of supply and
network stability in Europe. On May 30 the EU Energy Council also
adopted the European Council’s conclusions for promoting sustainable
electricity network infrastructure. In particular, the Council called on the
Commission to promote a regulatory environment that is compatible with
the requirements of the agreed-on decarbonization targets while also
facilitating foresightful investments. An implementation agenda is to be
developed as well. Its purpose is to support member states—in close
collaboration with transmission and distribution system operators—in
removing the main barriers to efficient use and in supporting the expansion
of electricity infrastructure. We advocate a Power Infrastructure Deal to
support urgently needed investments in network modernization. Such
measures can create incentives to closely synchronize renewables growth
and network expansion. In addition, lower taxes and a support scheme for
electrification could help make energy more affordable in the long term.
In May 2024 the EU adopted a package of measures for hydrogen and a
decarbonized gas market to support Europe’s hydrogen ramp-up. The
overarching goal is to create a common framework for decarbonizing the
gas and hydrogen market and to adapt the legal framework to future
gaseous energy mixes that contain less (fossil) natural gas and an
increasing proportion of renewable and low-carbon gases. The package
stipulates that most of the rules that apply to existing natural gas networks
will remain largely unchanged for decarbonized gases and will be adopted
for hydrogen networks. This concerns the ownership unbundling of
transmission system operators, the unbundling of regulated facilities, and
third-party access to natural gas and hydrogen networks, including storage
facilities and terminals. Member states transposed the regulation into
national law by August 2024.
The EU adopted the Artificial Intelligence Act (“AI Act”) and the Cyber
Resilience Act in 2024 as part of its digital agenda. The former aims to
ensure the responsible use of AI. Its requirements range from simple
labeling to extensive documentation obligations for high-risk applications.
We believe this places too much focus on minimizing risk in high-risk AI
systems and advocate clearer requirements that balance innovation and
regulation. The Cyber Resilience Act is intended to establish basic security
requirements for digital products on the EU market. It focuses on
cybersecurity along the entire supply chain, particularly amid growing risks
and geopolitical challenges in IT procurement. Its security-by-design
approach is of particular importance to E.ON in view of the growing cyber
risks in the supply chain and the increasing geopolitical implications of
procuring IT components. Cybersecurity requirements are therefore no
longer limited to operators of critical infrastructures but extend to the
entire supply chain.
Germany
Germany’s Heat Planning Act (German abbreviation: “WPG”) and Building
Energy Act (German abbreviation: “GEG”) took effect at the start of 2024.
Both laws are intended to propel Germany’s heating transition. The WPG
regulates details on the mandatory introduction of municipal heat planning
from 2026 or 2028 onward (the latter for municipalities with fewer than
100,000 inhabitants). The GEG regulates details on the implementation of
the heating transition for owners of new and existing buildings. Although
the two laws’ contents are linked, in some cases this makes the situation
complex and inconsistent. In addition, the heating plan foreseen by the
WPG is not legally binding: being assigned to a specific heating network
territory does not imply an obligation to use or offer a specific type of heat
supply. This means that practically all infrastructure operators currently
lack the necessary planning certainty. A lack of planning certainty, which
can also result from the expiration of concession agreements before
investments have been amortized, could delay decarbonization measures.
The massive expansion and decarbonization of the district heating supply
are indispensable for the heating transition. In the summer of 2024, the
German government presented draft legislation to regulate district heating.
E.ON sees this as an opportunity to create planning and investment
security as well as transparency for its customers. The reform must be
designed so that it provides sufficient incentives for investments in
decarbonization.
The German federal government published its power plant strategy on
February 5, 2024. The strategy will use auctions to promote the immediate
expansion of new, modern, highly flexible and climate-friendly (H2-ready)
power plants that will be included in a capacity mechanism from 2028
onward. The strategy is a step in the right direction, but many important
aspects remain undecided. These include the total capacity to be auctioned
(currently only four auctions for 2.5 MW have been announced) and how
this capacity will be integrated into a future capacity market (for which
initial market designs were proposed in August). In addition, the strategy
must be harmonized with state-aid guidelines, which require proof of a
supply gap. The desired regional distribution of power plants puts bidding
zoning back on the agenda as well. Another important issue is whether
expanding capacity before Germany’s planned coal phaseout in 2030 is
possible. Nevertheless, we believe that the swift establishment of a
market-based, technology-neutral capacity market is crucial.
The presentation of the power plant strategy on February 5, 2024,
included the announcement that a capacity mechanism will be introduced
by 2028. In August 2024 the German federal government published a
paper with options for the electricity market design of the future. It
included a proposal for a hybrid capacity market. This envisages dividing
the market into two parts: a central capacity market for investments with
longer refinancing periods and a decentralized market that gives balancing
group managers access to capacity certificates and obliges them to ensure
the respective maximum load at certain times of the year.
The challenge of the auction process for new power plants (see the power
plant strategy above) will be to define, as quickly as possible, clear and
comprehensive rules for capacity mechanisms so as to avoid unnecessary
risk prices. The hybrid capacity market is intended to combine the
advantages of a centralized and decentralized capacity market but also
significantly increases the administrative burden. The objective should be
to establish a capacity market that is as open as possible and thus liquid
and that also encompasses load management and storage facilities.
Belgium’s capacity market could serve as a model, especially because the
European Commission is already reviewing it.
The strategy also calls for the establishment of regional flexibility markets
for network congestion and for renewables facilities (possibly including
storage facilities and hydrogen sinks) to be assigned to them.
The law on the smart meter rollout in Germany (German abbreviation:
“GNDEW”) took effect on May 27, 2023. The law’s aim is to accelerate the
installation of smart energy meters across Germany. These meters are
supposed to be in use in households and businesses nationwide by 2032.
E.ON supports a pragmatic and rapid approach to the smart meter rollout
in order to enable flexibility, which is essential for an efficient energy
transition.
Shortly before the end of the 20th legislative period, the SPD, the Greens,
and the CDU/CSU parliamentary group in the Bundestag agreed on an
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E.ON Integrated Annual Report 2024
80
energy policy package of laws that will facilitate the continuation of the
energy transition. The package includes changes to the Energy Industry Act
(German abbreviation: “EnWG”), the Renewable Energy Sources Act
(German abbreviation: “EEG”), the Metering Point Operation Act (German
abbreviation: “MsbG”), the Combined Heat and Power Act (German
abbreviation: “KWKG”) and the Greenhouse Gas Emissions Trading Act
(German abbreviation: “TEHG”). From E.ON’s viewpoint, the EnWG, EEG,
and MsbG contain the most important changes. E.ON welcomes the fact
that the EnWG, among other things, creates a legal basis for flexible grid
connection contracts. However, the law also has a negative aspect in that it
gives distribution system operators additional audit and reporting
requirements that amount to complex additional tasks (Section 12 of the
EnWG-E). In contrast, E.ON likewise takes a positive view of the MsbG’s
clarification of the mandatory smart meter rollout: that is, only for PV
systems larger than 7 kW and customers that consume more than 6,000
kWh per year. We also consider constructive the EEG’s creation of an
option for flexible grid connection agreements, which, for example, give
network operators the option of limiting PV units’ active power during
certain timeframes. Other amendments relate to the operation of biomass
plants (EEG), combined heat and power (KWKG), and greenhouse gas
trading (TEHG), but are only of limited relevance to E.ON. The draft laws
passed the Bundestag in late January 2025.
Germany’s fourth regulatory period for power began in 2024. The general
productivity factor was set at the end of 2024. This means that all relevant
major regulatory parameters for the fourth regulatory period for power
have now been finalized. In December 2024 the Federal Court of Justice
overturned the Düsseldorf Higher Regional Court’s ruling regarding the
setting of the regulatory return on equity for power and gas, a ruling that
was appealed by the Federal Network Agency (German acronym:
“BNetzA”). In August 2023 the Düsseldorf court had initially ruled in favor
of network operators in their lawsuit. Consequently, the regulatory return
on equity set for the fourth regulatory period is likewise legally binding.
On January 18, 2024, the BNetzA published a key elements paper entitled
“Networks. Efficient. Secure. Transforming” (“NEST process”). It thereby
launched a process to review its current regulatory framework with regard
to the rapidly increasing demands on network operators as a result of the
energy and climate transition. The process will affect the fifth regulatory
period (gas from 2028 onward, power from 2029 onward). In refining the
regulatory framework, the BNetzA must gradually replace existing legal
ordinances by 2028—the Incentive Regulation Ordinance and the Network
Charges and Network Connection Ordinances for Gas and Power—in order
to comply with the ECJ’s ruling from 2021. The NEST process has so far
focused on possibly introducing weighted average cost of capital (“WACC”)
for determining regulated cost of capital. This determination would factor
in the adjustment of the future determination of cost of equity and cost of
debt, the consideration of operating costs that increase more rapidly during
the regulatory period because of the energy transition, the future
application of general and individual efficiency targets, and the incentive
regulation scheme for the gas transition. These aspects have been the
subject of a lengthy discussion process involving the industry since the
beginning of 2024 and are to culminate in a series of legislative acts,
starting with framework determinations, which will then be converted into
methodological determinations, which will finally be used to set individual
determinations. The future regulatory framework from the fifth regulatory
period onward will then consist primarily of purely regulatory
determinations, reflecting the BNetzA’s new political independence due to
the ECJ’s ruling. In early January 2025 the BNetzA published extensive
interim results on this. However, these are only preliminary statements of
the agency’s considerations and not yet a formal consultation. According
to the agency's current schedule, the framework determinations are
expected to be initially established in the first half of 2025. Additional
methodological provisions based on this framework are to follow by 2027
at the latest. Subsequent individual determinations for power are expected
by the end of 2028. This is a staged and ongoing consultation process.
Consequently, the resulting effects on E.ON still cannot be fully estimated
at this time.
In September 2024 the BNetzA published its decision to adjust the
imputed useful lives and depreciation modalities of natural gas pipeline
infrastructure (KANU 2.0). The decision reflects the federal government’s
decarbonization targets—which call for net greenhouse gas neutrality to be
achieved by 2045 (Section 3 of the Climate Protection Act)—and aims to
solve the problem of full regulatory amortization of existing gas network
assets, a problem that the industry has long pointed out. It allows for
significantly shorter imputed useful lives: in exceptional cases by 2035 and
generally by 2045 or 2040, depending on federal or state-specific climate
protection laws. In addition, it permits degressive depreciation with a
depreciation rate of up to 12 percent in order to better align capital costs
with the use profile of natural gas infrastructure and to rein in network fees
for the last customers still connected to the network. The new depreciation
modalities should be able to be used to calculate revenue caps and network
fees for 2025 to 2027. E.ON welcomes the new rule and will apply in
stages starting in 2025/2026.
A core hydrogen network is a key prerequisite for Germany’s hydrogen
ramp-up. The BNetzA approved the applied-for core network in October
2024. The extent to which distribution networks will in the future function
as transport grids for hydrogen from the core network will depend on how
various customer groups embrace the hydrogen ramp-up. The yet-to-be-
determined financing framework for hydrogen networks outside the core
network will—alongside distribution network infrastructure’s proximity to
the core network—be the primary influence on a possible transformation.
The E.ON Group’s network operators are monitoring developments closely.
United Kingdom
The new Labor government was elected in July 2024. It has a program of
five main goals, including “clean energy by 2030.” Since its election, the
new government has focused on the energy transition. Initial measures to
achieve the clean-energy target, which E.ON also welcomes, include
eliminating the de facto ban on onshore wind turbines, pledging to reform
planning and network connection procedures, conducting a successful
contracts-for-difference (“CfD”) auction for renewables, introducing the
National Energy System Operator, and presenting legislative initiatives to
establish Great British Energy, a new publicly owned energy company that
will invest in national and community projects.
The government also made other announcements to accelerate the energy
transition. These include reintroducing the ban on gasoline and diesel cars
from 2030 onward, removing planning obstacles for certain heat-pump
retrofits, increasing the heat-pump subsidy program, introducing a
mechanism for a clean heating market in 2025 (which sets heat-pump
sales targets for boiler manufacturers), and promising to raise the
minimum energy efficiency standards for rental properties by 2030.
However, some policy gaps remain to achieving the clean-energy target
and Britain’s wider decarbonization targets. For example, with energy bills
well above precrisis levels, energy affordability remains a big concern for
consumers. The new government is therefore determined to work in
partnership with industry to find long-term solutions for affordability and
energy debt. The previous government’s energy price cap remains in place.
The current debate focuses on how this cap might evolve in the future,
including the potential role of targeted support for vulnerable customers
and the cap’s interaction with other measures, such as a ban on tariffs that
only apply to new customers.
Netherlands
The collapse of Mark Rutte government in 2023 reshaped the Dutch
political landscape in 2024, leading to early parliamentary elections. A new
coalition emerged that prioritized the energy transition to meet the EU
targets of the Fit for 55 package and to achieve net-zero emissions by
2050. The centerpiece of the coalition’s agenda was the adoption of a
revised Energy Industry Act to simplify renewables projects and improve
network capacity.
The netting system, which allows solar facility owners to offset the
electricity they feed into the network against their consumption, is set to
be eliminated at the start of 2027. This legislation was passed after
parliament had previously rejected a gradual phaseout. Reforms to district
heating under the proposed Heat Act aimed to increase access but were
met with criticisms regarding their affordability for households and
profitability for operators.
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E.ON Integrated Annual Report 2024
81
At the same time, network congestion became an urgent challenge as rapid
renewables growth outpaced infrastructure development. The coalition
promised to improve collaboration between public and private actors to
expand network capacity and storage solutions. It also established an
Emergency Energy Fund in 2024 to help vulnerable households keep their
energy bills affordable.
Sweden
The Swedish government focused on developing new nuclear power
stations. This included publishing a report on financing and risk sharing for
such investments. The government also rejected 13 applications for
offshore wind farms in the Baltic Sea for defense reasons, while approving
one project on the west coast. District heating prices continued to rise
sharply in 2024, owing mainly to higher demand for Nordic biomass as a
result of lower imports from Russia. These price increases attracted
attention, prompting the government to investigate the market and
consumers’ position in it. There remains little political interest in price
regulation, however, not least because of the central role that district
heating plays in Sweden’s energy mix.
Romania
Romania’s energy market was in transition in 2024, with full liberalization
planned from April 2025 onward. This measure represents a reversal of the
partial regulation introduced during the 2021-2023 energy crisis. Full
liberalization includes the removal of price caps and other government
controls to comply with EU market rules and promote competition. While
liberalization is intended to improve market efficiency and attract foreign
investment, the government is looking for solutions to protect vulnerable
consumers from potentially rising energy prices and ensure fair access to
energy. The government also introduced support measures and incentives
to promote renewables projects, including a system of contracts for
difference to encourage the production of renewable energy. In addition,
the Romanian authorities changed their support policy for prosumers,
focusing on integrating storage capacity with solar systems. Given the
increasing decentralization of energy production and renewables’
intermittency, the government sought to modernize electricity networks
using smart technologies, with significant EU funding provided to network
operators. Despite these positive developments, E.ON believes the
regulatory framework still has room for improvement, particularly
regarding incentives for network operators to support a just energy
transition.
Slovakia
Slovakia experienced political and institutional turmoil in 2024, including
an assassination attempt on Prime Minister Fico. Despite these challenges,
it adopted a consolidation package, which included a three-percentage-
point VAT increase and the introduction of a new transaction tax. The
government concluded strategic partnerships with China in renewables,
transport, and infrastructure projects. The Minister of Economy Affairs
announced plans to conduct a public tender in 2025 for a new nuclear
power station in Jaslovské Bohunice. The government reached an
agreement to freeze household electricity prices at the current level of €61
per MWh in order to stabilize energy costs. It is also planning offset
measures to cushion the impact of rising gas prices.
Czech Republic
New legislation took effect in 2024 that enables energy communities to be
created and allows households, communities, and businesses to share
electricity both locally and nationally. These communities are expected to
be fully operational by 2026. The country introduced a new information
system for public administration as part of its effort to digitalize
construction procedures. The new system’s numerous bugs, however, led
to delays in many projects, including those for renewables. Demand for
smaller renewable energy connections increased, which led to connection
capacity being exhausted in many regions. In the ongoing tendering
process for the construction of new nuclear power stations, the
government decided to enter into negotiations with Korea Hydro & Nuclear
Power Company. Another wave of legislation currently under discussion
aims to transition to a new market model that will enhance consumer
protection, expand energy storage options, and enable end-users to
provide and aggregate flexibility. Plans call for the transition to this model
to take place by the end of 2027.
Hungary
At the beginning of 2024, the Hungarian government changed the rules for
the procedure for allocating network capacity to ensure that the increased
demand for capacity is handled efficiently and fairly. Network operators
reject all applications for which the earliest possible connection cannot be
guaranteed until after 2030. During the year, the government began to
review this procedure together with network operators. The findings are
not expected until sometime in 2025 at the earliest. Hungary submitted its
revised National Energy and Climate Plan in October. The plan for the
period through 2030 aims to enhance Hungary’s energy sovereignty, to
ensure security of supply, and also to preserve the results of reduced utility
fees. The new regulatory period for power began in 2025. It replaced real
with nominal rates of return on investment, which reduced the regulated
asset base. This change makes Hungary’s regulatory system less
attractive.
Poland
The transition from a system of government-imposed price caps for retail
energy to market-based prices shaped 2024 in Poland. Although in
December 2023 parliament had extended the old price-cap system to the
first half of 2024, in the second half of the year the new government began
working on a timetable for eliminating price caps for power, natural gas,
and district heating. The government also presented a more ambitious
draft of its National Energy and Climate Plan. Consultations on the plan
were completed in early 2025.
Special Events in the Reporting Period
Significant Changes to the Management System and Business
Model
On September 11, 2023, the Management Board approved a new
management concept for the E.ON Group. The concept has been in effect
since January 1, 2024, and entails a change in the definition of certain
operating segments in accordance with IFRS 8.
Beginning January 1, 2024, the E.ON Group’s business model consists of
three business divisions: Energy Networks, Energy Infrastructure
Solutions, and Energy Retail.
In addition, a number of regional markets at the Energy Networks business
division were reassigned, likewise effective January 1, 2024. The reporting
of our activities in East-Central Europe/Turkey is divided into two reporting
segments: Central Eastern Europe (which includes the Czech Republic,
Poland, and a shareholding accounted for using the equity method in
Slovakia) and South Eastern Europe (which includes Hungary/Croatia,
Romania, and our stake in Enerjisa Enerji in Turkey, which is accounted for
using the equity method).
Furthermore, the E.ON Group’s central commodity procurement entity,
E.ON Energy Markets GmbH, is reported at Energy Retail—Other effective
January 1, 2024. It was part of Corporate Functions/Other until December
31, 2023.
Impact on Goodwill Allocation
The change in the definition of E.ON’s operating segments pursuant to
IFRS 8 was accompanied by a reallocation—effective January 1, 2024—of
existing goodwill amounts for all cash-generating units containing goodwill
that were affected by the changes. Goodwill was reallocated on the basis
of relative fair values in accordance with the requirements of IAS 36.
Energy Infrastructure Solutions is significantly more asset-intensive than
Energy Retail. As a result, its book value was high relative to its fair value.
This necessitated a trigger-based impairment test at January 1, 2024.
Including newly allocated goodwill, Energy Infrastructure Solutions’ book
value exceeded its recoverable amount. This required the recording of an
impairment charge of originally €624 million on reallocated goodwill at
Energy Infrastructure Solutions. This charge is recognized under
depreciation and amortization. Exchange-rate developments resulted in the
impairment charge on goodwill increasing by €4 million through the end of
the third quarter of 2024. Following a total impairment charge of €628
million, goodwill at the Energy Infrastructure Solutions business division
amounted to €1,490 million on December 31, 2024.
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E.ON Successfully Issued €4.95 Billion in Bonds
E.ON successfully issued ten bonds totaling roughly €4.95 billion in 2024:
• €750 million green bond that matures in January 2031 and has a
coupon of 3.375 percent
• €750 million green bond that matures in January 2036 and has a
coupon of 3.750 percent
• €800 million bond that matures in March 2032 and has a coupon of 3.5
percent
• €1 billion green bond that matures in March 2044 and has a coupon of
4.125 percent
• €100 million green private placement that matures in June 2040 and
has a coupon of 3.976 percent
• NOK 1 billion green private placement that matures in August 2034 and
has a coupon of 4.4675 percent. It is fully hedged against interest-rate
and currency risk. Including the hedging transaction, this yields a euro-
denominated liability of roughly €86 million and an interest rate of 3.517
percent per year
• NOK 1.32 billion green private placement that matures in August 2034
and has a coupon of 4.4505 percent. It is fully hedged against interest-
rate and currency risk. Including the hedging transaction, this yields a
euro-denominated liability of roughly €112 million and an interest rate
of 3.535 percent per year
• €750 million green bond that matures in March 2030 and has a coupon
of 3.125 percent
• €500 million bond that matures in September 2038 and has a coupon of
3.875 percent
• JPY 16 billion green private placement that matures in December 2030
and has a coupon of 1.223 percent. It is fully hedged against interest-
rate and currency risk. Including the hedging transaction, this yields a
euro-denominated liability of roughly €100 million and an interest rate
of 3.009 percent per year.
These bond transactions concluded from March onward enabled E.ON to
begin securing a portion of its funding requirements for 2025 at an early
stage. In addition, in March 2024 E.ON issued its first 20-year, euro-
denominated bond. Lastly, E.ON was able to further diversify its investor
base with the private placements issued in 2024.
Arbitration Proceedings in Spain
E.ON SE, E.ON Finanzanlagen GmbH, and E.ON Iberia Holding GmbH are
plaintiffs in arbitration proceedings against the Kingdom of Spain. In the
arbitration proceedings, the three companies are asserting claims for
damages for changes to Spain’s remuneration scheme for renewable
energy. The arbitration proceedings have been pending at the International
Center for Settlement of Investment Disputes (“ICSID”) since they were
registered on August 10, 2015. On January 18, 2024, an arbitration
tribunal awarded the companies damages totaling approximately €0.3
billion. Spain initiated an annulment procedure with a filing dated May 17,
2024. As the legal process has not yet been exhausted and there are
therefore still uncertainties regarding the final outcome of the proceedings,
E.ON is not reporting a receivable or any associated income at the end of
Dezember 2024 either. Instead, it continues to disclose a contingent
receivable.
Termination of the Operating Concession for a Wastewater
Treatment Plant in Croatia
A concession agreement for the operation of a wastewater treatment plant
existed between Zagrebacke otpadne vode d.o.o., a company consolidated
in the E.ON Group using the equity method, and the City of Zagreb. By
majority resolution of the city assembly on January 25, 2024, the City of
Zagreb exercised its contractually agreed-on right to unilaterally terminate
this concession. The six-month termination period expired in early August,
and operational control of the asset passed to the City of Zagreb.
Negotiations on the amount of the compensation payment are ongoing. In
the 2024 financial year E.ON recorded an earnings contribution to net
income in the single-digit million range and does not anticipate a significant
disposal gain.
Changes on the Management Board
At the start of June, E.ON completed the changes to the Management
Board it had announced in March. Marc Spieker, previously Chief Financial
Officer of E.ON SE, succeeded Patrick Lammers as Chief Operating
Officer—Commercial on June 1. His new responsibilities include the sales
and customer solutions businesses at the Energy Retail and Energy
Infrastructure Solutions business divisions as well as Commercial
Programming, Hydrogen, Energy Management, and Marketing. Patrick
Lammers left the Company to assume an executive position outside E.ON.
Nadia Jakobi, previously CEO of the E.ON Group’s central commodity
procurement entity, E.ON Energy Markets GmbH, succeeded Marc Spieker
as Chief Financial Officer on June 1.
German Regulatory Agency Affirms E.ON’s Pacesetting Role in
Electricity-Network Efficiency
In late April 2024, the Federal Network Agency’s nationwide efficiency
comparison for the fourth regulatory period rated the efficiency of the
E.ON Group’s power distribution networks at nearly 100 percent
(weighted-value rating of 99.5 percent). E.ON’s power distribution
networks significantly outperform the industry average of 95.9 percent.
Disposal of a Joint Venture in the Netherlands
As of the reporting date, Essent Energy Next Solutions B.V. (Essent) held a
49 percent stake in a joint venture, Kemkens Groep B.V., which was
consolidated at equity. The joint venture partner had a contractually agreed
call option entitling them to acquire the 49 percent stake. In June 2024,
Essent was notified in writing by the joint venture partner about the
intention to exercise this option. The closing of the transaction was
expected in the second half of 2024. As a result, IFRS 5’s criteria for a
classification as held for sale were met for the first time as of June 30,
2024. The shareholdings at the Energy Retail—Netherlands segment was
reported as an asset held for sale in the balance sheet in the second and
third quarter of 2024. The transaction ultimately closed on October 8,
2024, yielding with a positive disposal gain in the low double-digit million
range.
Agreement on the Sale of the Energy Retail Business in Romania
On December 16, 2024, E.ON entered into an agreement to sell its 68
percent stake in E.ON Energie România S.A. and its 98 percent stake in
E.ON Asist Complet S.A. (both reported in the Energy Retail—Other
segment) to the MVM Group. The transaction is subject to necessary
approvals and is expected to close in the first half of 2025. Until the
transaction closes, the business will continue to be classified as a disposal
group in accordance with IFRS 5.
Subsequent Events
E.ON Successfully Issues Bonds at the Start of the Year
E.ON successfully issued two bonds totaling roughly €1.75 billion in early
January 2025:
• €850 million bond that matures in April 2033 and has a coupon of 3.5
percent
• €900 million green bond that matures in January 2040 and has a
coupon of 4.0 percent.
This—along with pre-financing conducted in 2024—enabled E.ON to
secure, at the start of the year, a significant portion of its funding
requirements for 2025.
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Business Performance
E.ON’s operating business performed in line with expectations in the 2024
financial year, and E.ON met its forecast for key performance indicators.
External sales in the 2024 financial year decreased by €13.6 billion to
€80.1 billion. This performance is mainly attributable to lower price levels
on wholesale markets and to a weather-driven decline in sales volume.
The E.ON Group’s adjusted EBITDA of €9.0 billion was €0.4 billion below
the prior-year figure of €9.4 billion but was at the upper end of the forecast
range of €8.8 to €9.0 billion. Energy Networks recorded adjusted EBITDA
of €6.9 billion, which was likewise at the upper end of the forecast range of
€6.7 to €6.9 billion. Energy Infrastructure Solutions’ adjusted EBITDA of
€0.56 billion was at the lower end of the forecast range of €0.55 to €0.65
billion. Adjusted EBITDA at Energy Retail of €1.8 billion was at the upper
end of the forecast range of €1.6 to €1.8 billion. Corporate
Functions/Other’s adjusted EBITDA of -€0.2 billion was in line with
expectations.
Further growth in the regulated asset base due to additional investments
was the main factor in Energy Networks’ solid earnings contribution. In
addition, the switch to the new regulatory period for power in Germany
and Sweden resulted, among other things, in higher regulated revenues.
Although Energy Infrastructure Solutions’ adjusted EBITDA remained at
the prior-year level, Energy Retail recorded a decline in earnings owing to
the anticipated non-recurrence of positive one-off effects in the mid-to-
high triple-digit million range recorded in the prior year.
Adjusted net income of €2.9 billion (prior year: €3.1 billion) was in the
middle of the forecast range of €2.8 to €3.0 billion. Earnings per share
based on adjusted net income (“EPS”) amounted to €1.09 in the year under
review (prior year: €1.18) and were thus at the lower end of the forecast
range of €1.07 to €1.15.
Cash-effective investments of €7.5 billion were significantly above the
prior-year figure of €6.5 billion and also above the forecast target figure of
roughly €7.2 billion. Energy Networks’ investments of €5.8 billion
surpassed the forecast figure of roughly €5.7 billion. They went mainly
toward network infrastructure projects. Energy Infrastructure Solutions
invested €1.0 billion, which surpassed the forecast figure of roughly €0.8
billion. A large portion reflected investments in projects in the United
Kingdom and Germany. Investments at Energy Retail (€0.5 billion) and at
Corporate Functions/Other (€0.2 billion) were in line with the forecast
figures.
Energy Networks
Power and Gas Wheeling Volume
On balance, power wheeling volume (307.2 billion kWh) was unchanged
from the prior year. Gas wheeling volume (195.9 billion kWh) rose slightly
over the same period, in particular because of lower gas prices, which
stabilized again.
Wheeling Volume1
Germany
Sweden
Central Eastern Europe
South Eastern Europe
Total
Billion kWh
2024
2023
2024
2023
2024
2023²
2024
2023
2024
2023
Fourth quarter
Power
62.0
61.1
9.5
9.9
5.4
6.1
8.1
7.9
85.0
85.0
Network loss, station use, etc.
1.9
2.0
0.3
0.3
0.2
0.3
0.5
0.4
2.9
3.0
Gas
51.1
44.1
0.0
0.0
1.1
0.9
14.3
12.2
66.5
57.2
Full year
Power
221.7
220.5
34.4
33.3
20.8
24.1
30.3
29.8
307.2
307.7
Network loss, station use, etc.
7.1
6.9
1.1
1.0
0.8
1.0
1.8
1.8
10.8
10.7
Gas
155.6
149.8
0.0
0.0
2.8
3.0
37.5
37.0
195.9
189.8
1Because of changes in segment reporting, prior-year figures were adjusted accordingly.
2VSEH of Slovakia is only included until its transfer to ZSE (end of November).
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E.ON Integrated Annual Report 2024
84
System Length and Network Customers
E.ON’s power system in Germany was about 692,000 kilometers long,
almost unchanged from the prior-year figure (about 694,000 kilometers).
At year-end E.ON had about 14.8 million network customers for power in
its service territory (prior year: 14.9 million). E.ON’s gas system in Germany
was almost unchanged at about 98,000 kilometers, as was the number of
network customers‚ roughly 1.9 million.
The length of E.ON’s power system in Sweden was 143,000 kilometers
(prior year: about 142,000 kilometers). The number of customers in the
power distribution system was about 1.1 million, unchanged from the prior
year.
E.ON operates power networks in Central Eastern Europe with a total
system length of roughly 87,000 kilometers (prior year: about 109,000
kilometers) and supplies about 2.7 million network customers (prior-year:
3.4 million). The changes result from the altered consolidated method for
Východoslovenská energetika Holding a.s. in Slovakia in late November
2023. Gas networks operated by E.ON were roughly 4,600 kilometers long
(prior year: around 4,600 kilometers). As in the prior year, the number of
gas network customers was about 0.1 million.
E.ON operates power networks in Southern Eastern Europe with a total
system length of roughly 162,000 kilometers (prior year: about 165,000
kilometers) and, as in the prior year, supplies about 5.1 million network
customers. Gas networks operated by E.ON were roughly 46,000
kilometers long (unchanged from the prior year). As in the prior year, there
were about 2.7 million gas network customers.
Energy Infrastructure Solutions
Energy sold to third parties (heat, electricity, steam, and cooling) amounted
to 16.8 billion kWh in the 2024 financial year, which was slightly below
the prior year (17.7 billion kWh). The decline in sales volume due to
weather and unscheduled maintenance work in the first half of 2024 was
only partially offset in the second half.
Energy Retail
Power and Gas Sales Volume
Power sales in the 2024 financial year declined by 23.8 billion kWh year on
year to 217.0 billion. Gas sales did as well by 3.6 billion kWh to 403.4
billion kWh.
The main reasons for the decline in power and gas sales in almost all of
E.ON’s regional markets were portfolio streamlining in line with our B2B
strategy, mild weather, and the altered consolidated method for
Východoslovenská energetika Holding a.s. in Slovakia in late November
2023.
Power Sales1
Germany
United Kingdom
The Netherlands
Other
Total
Billion kWh
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Fourth quarter
Residential and SME
8.0
9.2
4.7
5.0
3.4
1.6
5.3
5.5
21.4
21.3
I&C
3.2
5.7
4.3
4.0
0.2
0.5
2.1
2.4
9.8
12.6
Sales partners
2.3
0.3
0.9
0.9
–
–
0.4
0.5
3.6
1.7
Customer groups
13.5
15.2
9.9
9.9
3.6
2.1
7.8
8.4
34.8
35.6
Wholesale market
2.6
2.5
1.4
1.7
0.2
0.9
19.9
22.0
24.1
27.1
Total
16.1
17.7
11.3
11.6
3.8
3.0
27.7
30.4
58.9
62.7
Full year
Residential and SME
30.4
31.9
17.5
18.3
6.1
4.4
18.8
20.2
72.8
74.8
I&C
15.1
19.9
18.2
18.9
0.8
1.6
7.8
10.0
41.9
50.4
Sales partners
7.4
7.9
3.1
2.9
–
–
1.2
2.5
11.7
13.3
Customer groups
52.9
59.7
38.8
40.1
6.9
6.0
27.8
32.7
126.4
138.5
Wholesale market
6.3
6.8
6.0
7.5
0.9
1.1
77.4
86.9
90.6
102.3
Total
59.2
66.5
44.8
47.6
7.8
7.1
105.2
119.6
217.0
240.8
1Because of changes in segment reporting, prior-year figures were adjusted accordingly.
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E.ON Integrated Annual Report 2024
85
Customer Numbers
The fully consolidated companies in the Energy Retail business division had
a total of about 34.6 million customers, which was at the prior-year level
(34.7 million). The number of customers in Germany (14.1 million) and the
Netherlands (4.0 million) was almost unchanged from the prior year. Our
customer base in the United Kingdom declined to 8.5 million owing to
portfolio streamlining to focus on value-oriented customers (prior year: 8.9
million). We recorded slight gains in the other regions (among which: Italy
and Croatia), which increased the number of customers from 7.8 million to
8.0 million.
The development of customer numbers encompasses both power and gas
customers.
Gas Sales1
Germany
United Kingdom
The Netherlands
Other
Total
Billion kWh
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Fourth quarter
Residential and SME
13.3
12.5
12.2
12.0
6.2
5.9
10.6
9.5
42.3
39.9
I&C
4.1
5.1
1.2
1.5
3.1
3.4
1.3
1.6
9.7
11.6
Sales partners
3.1
0.1
3.2
2.9
–
–
–
–
6.3
3.0
Customer groups
20.5
17.7
16.6
16.4
9.3
9.3
11.9
11.1
58.3
54.5
Wholesale market
1.0
0.5
4.8
1.8
0.1
0.2
49.6
60.9
55.5
63.4
Total
21.5
18.2
21.4
18.2
9.4
9.5
61.5
72.0
113.8
117.9
Full year
Residential and SME
38.4
36.3
36.2
36.0
16.6
17.0
26.4
28.5
117.6
117.8
I&C
15.0
18.1
4.4
6.2
10.5
12.2
4.0
6.3
33.9
42.8
Sales partners
8.8
8.3
9.1
8.3
–
–
–
0.1
17.9
16.7
Customer groups
62.2
62.7
49.7
50.5
27.1
29.2
30.4
34.9
169.4
177.3
Wholesale market
5.6
4.1
12.3
14.5
0.4
0.9
215.7
210.2
234.0
229.7
Total
67.8
66.8
62.0
65.0
27.5
30.1
246.1
245.1
403.4
407.0
1Because of changes in segment reporting, prior-year figures were adjusted accordingly.
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E.ON Integrated Annual Report 2024
86
Earnings Situation
External Sales
The E.ON Group’s external sales declined by €13.6 billion in the 2024
financial year to €80.1 billion (prior year: €93.7 billion).
Energy Networks’ sales rose by €3.1 billion year on year to €20.7 billion
(prior year: €17.6 billion). One reason for this was continued growth in our
regulated asset base, which had a positive impact on our sales performance
in all regions. Developments in Germany, where wheeling volume was
slightly lower, were attributable in particular to the discontinuation of
government subsidies for transmission network tariffs, which contributed
to an increase in network tariffs in 2024. Higher sales in Sweden resulted
from an increase in wheeling volume along with network tariffs due to
improved regulatory parameters. In the Central Eastern Europe segment
the missing revenue from Východoslovenská energetika Holding a.s. in
Slovakia, which was deconsolidated at the end of November 2023, was
overcompensated by higher network tariffs in Poland. The decline in sales
at South Eastern Europe was mainly related to a reduction in network
tariffs in Hungary that reflect lower procurement costs for network losses
due to reduced power prices.
Energy Infrastructure Solutions‘ sales of €2.7 billion were €0.3 billion
below the prior-year figure (€3.0 billion). This decline is principally
attributable to a decline in sales volume and lower sales prices at the
heating business in Germany resulting from the passthrough of decreased
procurement costs.
Energy Retail’s sales declined by €16.3 billion to €56.5 billion (prior year:
€72.8 billion). This development is mainly attributable to lower commodity
prices and was noticeable in nearly all E.ON regions. The price trend on
commodity markets led to a significant drop in sales, particularly in the
United Kingdom. Sales also declined owing to a reduction in sales volume
that resulted from our ongoing focus on residential and smaller business
customers as well as medium-sized business customers, primarily in
Germany and the Netherlands. The sales-dampening effect from the
settlement of derivatives declined year on year because the decrease in
commodity prices was less pronounced.
Sales recorded at Corporate Functions/Other of €0.2 billion were equal to
the prior-year figure.
External Sales1
Fourth quarter
Full year
€ in millions
2024
2023
+/- %
2024
2023
+/- %
Energy Networks
5,973
4,987
20
20,691
17,607
18
Germany
4,807
3,905
23
16,905
13,599
24
Sweden
318
242
31
1,179
986
20
Central Eastern Europe
355
234
52
970
934
4
South Eastern Europe
493
606
-19
1,637
2,088
-22
Energy Infrastructure Solutions
852
805
6
2,677
3,003
-11
Energy Retail
16,966
18,588
-9
56,503
72,829
-22
Germany
5,875
6,626
-11
20,023
23,937
-16
United Kingdom
4,340
5,476
-21
16,476
23,432
-30
The Netherlands
888
1,036
-14
2,759
4,201
-34
Other
5,863
5,450
8
17,245
21,259
-19
Corporate Functions/Other
44
63
-30
248
247
0
E.ON Group
23,835
24,443
-2
80,119
93,686
-14
1Because of changes in segment reporting, prior-year figures were adjusted accordingly.
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E.ON Integrated Annual Report 2024
87
Other Line Items from the Consolidated Statement of Income
The Consolidated Statement of Income can be found in the Consolidated
Financial Statements.
Own work capitalized of €1,596 million was 20 percent above the prior-
year level (€1,334 million). It consisted predominantly of network
investments as well as ongoing and completed IT projects.
Other operating income totaled €11,739 in 2024 (prior year: €38,888
million). Income from derivative financial instruments alone declined by
€27,078 million year on year to €10,195 million, mainly because of the
development of prices on commodity markets. Income from currency-
translation effects (€517 million) was €61 million below the prior-year
figure (€578 million). Corresponding amounts resulting from currency-
translation effects and derivative financial instruments are recorded under
other operating expenses. Income from the sale of fixed assets and
securities amount to €129 million (prior year: €151 million).
Costs of materials of €58,990 million were significantly below the prior-
year level (€64,228 million). The sharp decline mainly reflects price
developments on commodity markets. The downward price trend that
began in the fall of 2023 reversed beginning in the second quarter of 2024.
Nevertheless, prices in 2024 were significantly below 2023 levels,
resulting in lower average procurement costs relative to the prior year. In
addition, in the case of forward procurement contracts, which under IFRS
are accounted for as derivative financial instruments, at the time of
settlement the corresponding costs of materials are recorded at the market
price at delivery. Countervailing effects from the fair-value measurement
of commodity derivatives are recorded under other operating income.
Furthermore, costs of materials include a change in provisions for pending
transactions. These provisions were recorded mainly for contracted sales
transactions that are not subject to IFRS 9 (failed own-use transactions)
that are, however, commercially part of a portfolio that is partially offset by
procurement transactions that are accounted for as derivative financial
instruments.
Personnel costs of €6,534 million were €524 million above the prior-year
figure (€6,010 million). The change is mainly attributable to an increase in
the number of employees and to pay increases under collective bargaining
agreements.
Depreciation and amortization charges increased year on year, from
€3,514 million to €4,401 million. This is mainly attributable to an
impairment charge on goodwill at Energy Infrastructure Solutions. Higher
depreciation charges on property, plant, and equipment due to additional
investments in the network business constituted another factor.
Other operating expenses of €15,384 million were €44,164 million below
the prior-year level (€59,548 million), in particular because expenditures
relating to derivative financial instruments (including currency-translation
effects) declined by €43,485 million to €9,860 million. Expenditures
relating to currency-translation effects rose by €32 million to €750 million.
Income from companies accounted for under the equity method of €258
million was significantly below the prior-year level (€478 million). The
decline resulted mainly from lower equity earnings from shareholdings in
Turkey and from the network business in Slovakia.
Income taxes yielded a tax expense of €1,769 million in 2024 (prior year:
tax income of €598 million). This resulted mainly from deferred tax
expenses stemming from positive effects relating to derivative financial
instruments. In the reporting period, countervailing effects resulted from
tax income from prior years, including €198 million from a concluded
redress procedure, and changes in value of deferred taxes. Negative effects
from the measurement of derivatives and changes in the value of deferred
taxes yielded, on balance, tax income in the prior year.
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E.ON Integrated Annual Report 2024
88
Adjusted EBITDA
The E.ON Group’s adjusted EBITDA declined by €321 million in the 2024
financial year to €9,049 million (prior year: €9,370 million).
Energy Networks’ adjusted EBITDA rose by €251 million to €6,868 million
(prior year: €6,617 million). The start of the new regulatory period for
power—due to our larger regulatory asset base, albeit with a simultaneous
reduction in the rate of return on equity—led to an earnings increase in
Germany. The non-recurrence of positive redispatch effects recorded in
2023 had a particularly negative effect. Slightly weaker-than-expected
wheeling volume in 2024 resulting primarily from continued subdued
economic activity in Germany was another adverse factor for earnings.
Increased costs from upstream networks likewise had a negative impact on
earnings. Adjusted EBITDA increased year on year in both Sweden and
South Eastern Europe. The principal reasons were a higher regulatory rate
of return in the fourth regulatory period that began in Sweden, higher
wheeling volume as well as lower costs for network losses in Hungary, and
higher tariffs in Romania. The deconsolidation of Východoslovenská
energetika Holding a.s. in Slovakia in late November 2023 had an
offsetting effect at Central Eastern Europe. Since this time, this company’s
results are recognized in the results of E.ON’s 49-percent stake in
Západoslovenská energetika a.s., which is accounted for using the equity
method. In addition, continued growth in our regulated asset base had a
positive impact on earnings performance in all regions.
Energy Infrastructure Solutions recorded adjusted EBITDA of €558 million
in 2024, which was at the prior-year level (€565 million). Investment-
driven growth, positive price effects, and higher asset availability in the
United Kingdom were offset by an amount in the low double-digit millions
because of a reduction in sales volume due to weather and asset
availability and because of lower one-off effects than in the prior year.
Energy Retail’s adjusted EBITDA declined by €490 million to €1,813
million (prior year: €2,303 million). Negative effects relative to the prior
year resulted principally from the anticipated non-recurrence of positive
one-off items in the medium to high triple-digit millions. In the United
Kingdom this especially reflects effects relating to regulation. The
anticipated more active market environment, particularly in Germany and
the Netherlands, contributed to lower earnings as well. The Other
segment’s earnings declined principally because of the non-recurrence of
positive one-off effects related to portfolio management as well as the
change in consolidation method for Východoslovenská energetika Holding
a.s. in Slovakia. By contrast, lower risk provisions for bad debts for
residential and small business customers and for medium-sized business
customers due to lower wholesale prices, predominantly in the United
Kingdom, had a positive effect on earnings.
Adjusted EBITDA recorded at Corporate Functions/Other of -€183 million
was €68 million below the prior year (-€115 million). This is mainly
attributable to lower equity earnings from Enerjisa Üretim due to the
normalization of commodity prices and to expenditures for E.ON’s new
brand positioning.
E.ON generates a large portion of its adjusted EBITDA in very stable
businesses. Regulated, quasi-regulated, and long-term contracted
businesses accounted for the overwhelming proportion of E.ON’s adjusted
EBITDA in 2024.
E.ON’s regulated business consists, among other things, of operations in
which revenues are largely set by law and based on approved costs. The
earnings on these revenues are therefore extremely stable and predictable.
E.ON’s quasi-regulated and long-term contracted business consists of
operations in which earnings have a high degree of predictability because
key determinants (price and/or volume) are largely set for the medium to
long term. Examples include the operation of industrial customer solutions
with long-term supply agreements and the operation of heating networks.
Merchant activities are all those that cannot be subsumed under either of
the other two categories.
Adjusted EBITDA
Fourth quarter
Full year
€ in millions
2024
2023
+/- %
2024
2023
+/- %
Energy Networks
2,081
1,776
17
6,868
6,617
4
Germany
1,544
1,348
15
5,008
5,010
0
Sweden
191
118
62
714
576
24
Central Eastern Europe
168
166
1
632
732
-14
South Eastern Europe
179
145
23
514
298
72
Consolidation
-1
-1
–
–
1
-100
Energy Infrastructure Solutions
212
160
33
558
565
-1
Energy Retail
99
-330
130
1,813
2,303
-21
Germany
112
-127
188
751
858
-12
United Kingdom
-30
-189
84
552
639
-14
The Netherlands
66
-46
243
192
234
-18
Other
-49
31
-258
318
571
-44
Consolidation
–
1
-100
–
1
-100
Corporate Functions/Other
-26
-29
10
-183
-115
-59
Consolidation
-4
4
-200
-7
–
–
E.ON Group
2,362
1,581
49
9,049
9,370
-3
1Because of changes in segment reporting, prior-year figures were adjusted accordingly.
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E.ON Integrated Annual Report 2024
89
Adjusted Net Income
Adjusted net income decreased from €3,068 million to €2,856 million This
change mainly reflects our above-described adjusted EBITDA performance
and is accentuated by an increase in operating depreciation charges. Based
on E.ON stock outstanding, adjusted earnings per share (“EPS”) amounted
to €1.09 (prior year: €1.18).
Operating depreciation charges rose year on year from €2,983 million to
€3,287 million. This is mainly attributable to an increase in operating
depreciation charges on property, plant, and equipment resulting from
additional investments in our network business and IT projects.
In the operating interest result, net interest expenses increased from
€1,082 million to €1,140 million, primarily because of the increase in
economic net debt.
Unlike in the prior year, the tax expense on continuing operations was
calculated using an underlying tax rate on continued operations of 25
percent. The change in the calculation method, however, had no significant
quantitative consequences. The prior-year tax rate on continuing
operations was likewise 25 percent. The tax expense on continuing
operations declined from €1,325 million to €1,156 million. The underlying
tax rate on continued operations is based on long-term corporate planning
and reflects the anticipated long-term development of the operating
income tax expense.
Non-controlling interests’ share of operating earnings decreased from
€912 million to €610 million. The decline resulted mainly from lower
operating earnings at some minority-owned companies, in particular at
Energy Networks.
Adjusted Net Income
Fourth quarter
Full year
€ in millions
2024
2023
+/- %
2024
2023
+/- %
Adjusted EBITDA
2,362
1,581
49
9,049
9,370
-3
Operating depreciation
-966
-856
-13
-3,287
-2,983
-10
Adjusted EBIT
1,396
725
93
5,762
6,387
-10
Operating interest earnings
-299
-243
-23
-1,140
-1,082
-5
Taxes on operating earnings
-262
-120
-118
-1,156
-1,325
13
Operating earnings attributable to non-controlling interests
-184
-235
22
-610
-912
33
Adjusted net income
651
127
413
2,856
3,068
-7
Adjusted net income per share
0.25
0.05
400
1.09
1.18
-8
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E.ON Integrated Annual Report 2024
90
Reconciliation to Adjusted Earnings Metrics
IFRS net income in 2024 also included earnings components that are not
directly related to E.ON Group’s ordinary business activities or that are
non-recurring or rare in nature. These non-operating items are considered
separately in internal management control. Adjusted EBITDA and adjusted
net income reflect the E.ON Group’s long-term profitability and, as metrics
for internal management control, are adjusted to exclude such non-
operating items.
Net book gains/losses and restructuring expenses were minimal in 2024.
Effects in conjunction with derivative financial instruments changed by
€8,599 million to €4,366 million. They resulted mainly from the settlement
of sales and procurement transactions on derivatives that in the prior year
had a negative fair value. The fair-value measurement of pending sales and
procurement transactions had just a small countervailing effect because
energy prices on commodity markets at December 31, 2024, were again
roughly at the level of the start of the year.
Other non-operating expense/income consists mainly of expenditures in
conjunction with the application of IAS 29 on ownership interests in Turkey
that are accounted for using the equity method. The prior-year figure
included the disclosure of the earnings contribution of PreussenElektra,
whose commercial operations ended on April 15, 2023.
In addition, other non-operating expense/income components of EBITDA
include expenditures for the amortization of hidden reserves and liabilities
from the innogy transaction.
In the 2024 financial year, E.ON recorded depreciation and amortization
charges in connection with the innogy purchase-price allocation, which are
disclosed separately.
It also recorded in particular impairment charges of €628 million at Energy
Infrastructure Solutions. See also “Special Events in the Reporting Period”
regarding this matter.
Non-operating interest expense/income improved relative to the prior year.
An increase in the discount rate led to income from the discounting of non-
current provisions for asset-retirement obligations. By contrast, expenses
were recorded in the previous year due to a decline in interest rates. The
positive effect of €147 million (prior year: €187 million) from the
difference between the nominal interest rate and the effective interest rate
of former innogy bonds adjusted due to the purchase-price allocation is still
recorded under non-operating interest expense/income.
The non-operating tax result in the period under review is primarily
influenced by tax expenditures stemming from positive effects in
conjunction with derivative financial instruments. In the reporting period,
countervailing effects resulted from tax income from prior years, including
€198 million from a concluded redress procedure, and changes in value of
deferred taxes. In the prior-year period, negative items relating to the
measurement of derivatives as well as changes in value of deferred tax
liabilities led, on balance, to tax income.
Non-Operating Adjustments
Fourth quarter
Full year
€ in millions
2024
2023
2024
2023
Net book gains (+)/losses (-)
3
12
-15
5
Restructuring expenses
-14
4
-20
-22
Effects from derivative financial instruments
1,932
-1,587
4,366
-4,233
Carryforward of hidden reserves (+) and liabilities (-) from the innogy transaction
-14
13
-56
-100
Other non-operating earnings
25
-219
-509
-237
Non-operating adjustments of EBITDA
1,932
-1,777
3,766
-4,587
Depreciation of hidden reserves (-) and liabilities (+) from the innogy transaction
-95
-107
-413
-448
Other non-operating impairments/reversals
-81
-112
-782
-156
Non-operating interest expense (-)/income (+)
55
-514
139
-12
Non-operating taxes
-151
1,539
-614
1,922
Non-operating adjustments of net income/loss
1,660
-971
2,096
-3,281
Reconciliation to Adjusted EBITDA
Fourth quarter
Full year
€ in millions
2024
2023
2024
2023
Adjusted EBITDA
2,362
1,581
9,049
9,370
Non-operating adjustments of EBITDA
1,932
-1,777
3,766
-4,587
Income/loss from continuing operations before depreciation, interest result and income taxes
4,294
-196
12,815
4,783
Scheduled depreciation/impairments and amortization/reversals
-1,144
-1,076
-4,483
-3,588
Income/loss from continuing operations before interest results and income taxes
3,150
-1,272
8,332
1,195
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E.ON Integrated Annual Report 2024
91
Besides the above-described effects in the reconciliation to adjusted
EBITDA, the reconciliation to adjusted net income includes the following
items:
Non-controlling interests’ share of operating earnings declined relative to
the prior year. The decrease resulted mainly from lower operating earnings
at some minority-owned companies, in particular at Energy Networks.
Income from discontinued operations resulted from a transaction already
completed in 2005. In accordance with the purchase agreement, a one-
time purchase-price adjustment was made in the prior year after an audit
of the divested company was completed in the first quarter of 2023, and
the contractual clause has now taken effect.
Group adjusted net income and earnings per share amounted to €5,562
million and €1.73, respectively, in 2024. The increase is mainly due to the
general price trend on commodity markets. Prior-year Group adjusted net
income and earnings per share were €760 million and €0.20, respectively.
Reconciliation of Adjusted Net Income
Fourth quarter
Full year
€ in millions
2024
2023
+/- %
2024
2023
+/- %
Adjusted net income
651
127
413
2,856
3,068
-7
Operating earnings attributable to non-controlling interests
184
235
-22
610
912
-33
Non-operating adjustments of net income
1,660
-971
271
2,096
-3,281
164
Income from continuing operations
2,495
-609
510
5,562
699
696
Income/loss from discontinued operations, net
–
–
–
–
61
100
Net income
2,495
-609
510
5,562
760
632
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E.ON Integrated Annual Report 2024
92
Financial Situation
Finance Strategy
With its target capital structure E.ON aims to sustainably secure a strong
BBB/Baa rating.
E.ON manages its capital structure using debt factor, which is equal to
economic net debt divided by adjusted EBITDA; it is therefore a dynamic
debt metric. Economic net debt includes not only financial liabilities but
also provisions for pensions and asset-retirement obligations.
Pursuant to IFRS valuation standards, innogy’s financial liabilities at the
time of initial consolidation were recorded at their fair value. This fair value
is significantly higher than the original nominal value because interest-rate
levels have declined since innogy’s bonds were issued. The purchase-price
allocation yielded a difference between the nominal value and the fair
value, which results in additional liabilities of €1.4 billion at December 31,
2024 (at December 31, 2023: €1.5 billion). This amount will be recorded in
financial earnings as a reduction in expenditures and spread out over the
maturity period of the respective bonds (see Note 9 to the Consolidated
Financial Statements). These balance-sheet and earnings effects do not
alter the interest and principal payments. To manage economic net debt,
E.ON continues to use the nominal amount of financial liabilities, which
deviates from the figure shown in its balance sheets.
E.ON aims for a debt factor of up to 5.0. Debt factor at year-end 2024 of
4.5 (prior year: 4.0) was comfortably inside the target range of up to 5.0.
Economic Net Debt
Economic net debt increased by €3.4 billion relative to year-end 2023
(€37.7 billion) to €41.1 billion at year-end 2024.
This increase is due to a €3.9 billion rise in E.ON’s net financial position to -
€29.2 billion (prior year: €25.3). Investment expenditures and E.ON SE’s
dividend payout were the main factors. Specifically, this development was
reflected in an increase in financial liabilities, which resulted primarily from
the issuance of bonds totaling roughly €4.95 billion and countervailing
redemptions of roughly €2.1 billion.
In addition, provisions for pensions rose relative to the prior year by €0.2
billion (see Note 24 to the Consolidated Financial Statements). A roughly
€0.7 billion decline in asset-retirement obligations, resulting mainly from
utilizations, had the opposite effect (see Note 25 to the Consolidated
Financial Statements).
Economic Net Debt
December 31
€ in millions
2024
2023
Liquid funds
7,280
7,412
Non-current securities
869
1,177
Financial liabilities1
-37,677
-33,943
FX hedging adjustment
316
11
Net financial position
-29,212
-25,343
Provisions for pensions
-5,181
-4,985
Asset retirement obligations2
-6,674
-7,363
Economic net debt
-41,067
-37,691
1Bonds previously issued by innogy are recorded at their nominal value. The figure shown in the
Consolidated Balance Sheets is €1.4 billion higher (year-end 2023: €1.5 billion higher).
2The figure for asset-retirement obligations at December 31, 2024, again corresponds to the figure
shown in the Consolidated Balance Sheets (€6,674 million). The figure at December 31, 2023, did
not fully correspond to the figure shown in the Consolidated Balance Sheets (€7,375 million). This
is because economic net debt is calculated in part based on the actual amount of obligations.
Funding Policy and Initiatives
The key objective of E.ON’s funding policy is for the Company to have
access to a variety of funding sources at all times. E.ON achieves this
objective by using different markets and debt instruments to maximize the
diversity of its investor base. E.ON issues bonds with tenors that give its
debt portfolio a balanced maturity profile. Moreover, large-volume euro-
denominated benchmark issues may in some cases be combined with
bonds denominated in foreign currencies, smaller euro-denominated
issues, private placements, and/or promissory notes. Furthermore, from
2019 onward E.ON has issued green bonds and has since established them
in its funding mix. E.ON continues to intend to cover more than 50 percent
of its annual long-term funding requirements with green bonds (the
Sustainable Finance and Sustainable Investment chapter contains
information about the E.ON Green Bond Framework).
External funding is generally carried out by E.ON SE, and the funds are
subsequently on-lent in the Group. In the past, external funding was also
carried out by the Company’s Dutch finance subsidiary, E.ON International
Finance B.V. (“EIF“), under guarantee of E.ON SE. In 2024 E.ON fully
redeemed bonds totaling €2.1 billion. E.ON issued new debt totaling
roughly €4.95 billion (see the chapter entitled Special Events in the
Reporting Period), of which €3.5 billion were green bonds.
With the exception of a U.S.-dollar-denominated bond issued in 2008, all
of E.ON SE and EIF’s currently outstanding bonds were issued under a
Debt Issuance Program (“DIP“). Similarly, innogy and innogy Finance B.V.
bonds were formerly issued under the former innogy Group’s DIP. A DIP
simplifies a company’s ability to issue debt to investors in public and
private placements in flexible time frames. E.ON SE’s DIP was last renewed
in March 2024 with a total volume of €35 billion, of which about €23.4
billion was utilized at year-end 2024. E.ON SE intends to renew the DIP in
2025.
In addition to its DIP, 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. €0.2 billion of CP was outstanding at year-end 2024 (prior
year: €0.2 billion).
E.ON also has access to a €3.5 billion syndicated credit facility, which was
concluded on October 24, 2019. It originally had a five-year term and
includes two options to extend the facility, in each case for one year. After
both options to extend the facility were exercised, the term of the credit
facility ends on October 24, 2026. The credit margin is linked, among other
things, to the development of certain ESG ratings, which gives E.ON
financial incentives to pursue a sustainable corporate strategy. The ESG
ratings are set by three well-known agencies: ISS ESG, MSCI ESG
Research, and Sustainalytics. The facility serves as a reliable, ongoing
general liquidity reserve for the E.ON Group and can be drawn on as
needed. The credit facility is made available by 21 banks which constitute
E.ON’s core group of banks.
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E.ON Integrated Annual Report 2024
93
Financial Liabilities
December 31
€ in billions
2024
2023
Bonds1
30.9
27.9
EUR
23.2
20.5
GBP
5.9
5.7
USD
0.8
0.9
JPY
0.4
0.3
Other currencies
0.7
0.6
Promissory notes
–
–
Commercial paper
0.2
0.2
Other liabilities
6.3
5.8
Total
37.4
33.9
1Includes private placements (after currency hedging).
Alongside financial liabilities, E.ON has, in the course of its business
operations, entered into contingent liabilities and other financial
obligations. These include, in particular, guarantees, obligations from legal
disputes and damage claims, as well as short-term and long-term
contractual, legal, and other obligations. Notes 26, 27, and 31 to the
Consolidated Financial Statements contain more information about E.ON’s
bonds as well as liabilities, contingent liabilities, and other commitments.
E.ON’s creditworthiness has been assessed by Moody’s and Fitch with
long-term ratings of Baa2 and BBB+. Both ratings have a stable outlook. In
March 2024 Standard & Poor’s (“S&P”) raised its long-term rating from
BBB to BBB+ with a continued stable outlook. The ratings are based on the
assumption that E.ON will be able to maintain a debt ratio commensurate
with them. E.ON’s short-term ratings are A-2 (S&P), P-2 (Moody’s), and F1
(Fitch).
E.ON SE Ratings
S&P
Moodys'
Fitch
Long term
BBB+
Baa2
BBB+
Outlook
Stable
Stable
Stable
Bonds
BBB+
Baa2
A-
Short term
A-2
P-2
F-1
E.ON will continue to strive to earn the trust of rating agencies, investors,
and banks at all times by means of a clear strategy and transparent
communications. Alongside the ongoing dialog with capital market
investors (at roadshows, for example) and rating analysts, E.ON organizes
events that include an annual informational meeting for its core group of
banks.
Maturities of Bonds
Investments
The E.ON Group’s cash-effective investments of €7.5 billion in 2024 were
significantly above the prior-year figure of €6.5 billion. €7.0 billion (prior
year: €6.0 billion) went toward property, plant, and equipment and
intangible assets, whereas share investments totaled about €528 million
(prior year: €454 million).
The strategic focus of our investment activity is Energy Networks. This
business division’s investments rose by €0.7 billion to €5.8 billion (prior
year: €5.2 billion). The main focus in all regions was on new connections
and network expansion in conjunction with the energy transition.
Energy Infrastructure Solutions’ investments of €1.0 billion were €0.3
billion higher than the prior-year figure (€0.7 billion). This increase is due in
particular to the acquisition of a stake in a large-scale battery storage
project in Uskmouth in South Wales and this project’s ongoing
construction. E.ON’s purpose here is to create flexibility options for the
electricity network of the future. In addition, investments increased for the
expansion of our smart energy meter business in the United Kingdom and
for additional solutions to decarbonize the businesses of industrial and
commercial customers in Germany.
Energy Retail’s investments rose by €0.1 billion to €0.5 billion (prior year:
€0.4 billion). This increase is mainly due to IT investments to further
improve digital offerings to customers, regulatory requirements, and
investments to expand E.ON’s Europe-wide eMobility charging
infrastructure.
Investments at Corporate Functions/Other of €152 million (prior year:
€152 million) went especially toward intangible assets and other
shareholdings.
Cash Flow
Cash provided by operating activities of continuing operations before
interest and taxes of €7.3 billion was €0.1 billion above the prior-year
figure (€7.2 billion).
This resulted from an increase of €0.3 billion at Energy Networks in
Germany, which is mainly attributable to positive changes in working
capital. The 2023 financial year was characterized by temporary one-off
effects and higher market prices, whereas the current development of
receivables and liabilities led to a normalization of working capital and thus
to a year-on-year improvement.
The €0.2 billion increase at Energy Retail is attributable to adverse changes
in working capital in the prior year that did not recur in the 2024 financial
year. The negative changes in working capital were mainly attributable to
the timing difference between customer installment payments already
received in 2022 and payments from government support measures and
the related cash outflows from commodity procurement in 2023.
The shutdown of E.ON’s last nuclear power plant in April of last year and
the commencement of dismantling resulted in a €0.2 billion decline in
operating cash flow at Corporate Functions/Other.
Cash provided by investing activities of continuing operations of -€6.6
billion was €1.0 billion below the prior-year figure of -€5.6 billion. This
includes cash-effective investments of €7.5 billion (prior year: €6.5 billion).
This development is primarily attributable to the planned increase in
investments in property, plant, and equipment and intangible assets,
Investments1,2
€ in millions
2024
2023
Energy Networks
5,834
5,158
Energy Infrastructure Solutions
969
715
Energy Retail
547
440
Corporate Functions/Other
152
152
Consolidation
-3
-2
E.ON Group
7,499
6,463
1Because of changes in segment reporting, prior-year figures were adjusted accordingly.
2Adjustment of the previous year's figures due to the expansion of investments to include cash
inflows and outflows for loans to affiliated non-consolidated companies as well as other loans.
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E.ON Integrated Annual Report 2024
94
particularly at the network business Germany. In addition, the net of cash
inflow and outflow from securities was higher than in the prior year.
Cash provided by financing activities of continuing operations of -€1.1
billion was about €3.0 billion above the prior-year figure of -€1.8 billion.
The net of the issuance and repayment of bonds, commercial paper, and
bank liabilities led to a year-on-year improvement in cash provided by
financing activities. The effects relating to variation margins were lower in
the year under review than in the prior year.
Cash-Conversion Rate
Cash-conversion rate (“CCR“) indicates how much of the E.ON Group’s
earnings are transformed into cash flow. Adjusted CCR is equal to
operating cash flow before interest and taxes—excluding cash flow in
conjunction with the operating and dismantling activities of nuclear power
plants up to April 15, 2023 (2023: €-271 million; 2024: €-844 million)—
divided by adjusted EBITDA. E.ON’s CCR in 2024 was 90 percent (prior
year: 80 percent).
Cash Flow
€ in millions
2024
2023
Operating cash flow
5,673
5,654
Operating cash flow before interest and
taxes
7,343
7,225
Cash provided by (used for) investing
activities
-6,626
-5,588
Cash provided by (used for) financing
activities
1,106
-1,844
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95
Combined Group Management Report → Business Report
Asset Situation
Total assets and liabilities of €111.4 billion were about €2.1 billion, or 2
percent, below the figure at year-end 2023. Non-current assets rose by
€2.3 billion to €85.3 billion. This is mainly attributable to an increase in
investments in property, plant, and equipment along with higher equity
book values. The impairment charge on goodwill at Energy Infrastructure
Solutions caused by reallocation and a decline in receivables relating to
derivative financial instruments were countervailing factors. This relates in
particular to the development of commodity derivatives. Deferred tax
assets were lower as well owing to the development of derivatives.
Current assets decreased by 14 percent, from €30.5 billion to €26.1 billion.
This likewise resulted mainly from a decline in receivables relating to
derivative financial instruments due to the development of derivatives.
Trade receivables decreased as well. The reclassification of the Energy
Retail business in Romania to assets held for sale (IFRS 5) had a slight
offsetting effect.
Equity attributable to E.ON SE shareholders was about €17.8 billion at
December 31, 2024 (prior year: about €14.1 billion), whereas equity
attributable to non-controlling interests was about €6.3 billion (prior year:
about €5.9 billion). The equity ratio (including non-controlling interests) at
December 31, 2024, was around 22 percent, which is 4 percentage points
higher than at year-end 2023. The primary reason for the increase in equity
was positive net income, which was only partially offset by the dividend
payment. In addition, other income was higher due to currency-translation
effects.
E.ON Integrated Annual Report 2024
Non-current liabilities rose by €1.3 billion, or 2 percent, chiefly because of
the net of the issuance of new bonds and the redemption of maturing
bonds. This was partially offset by a decline in liabilities relating to
derivative financial instruments and a decrease in other provisions because
of the development of nuclear asset-retirement obligations.
Current debt of €30 billion was 20 percent below the figure at year-end
2023. This was due principally to a decrease in liabilities relating to
derivative financial instruments (which was likewise attributable to the
development of commodity derivatives) and a decline in liabilities from
trade accounts payable.
The Notes to the Consolidated Financial Statements contain more
commentary on E.ON’s asset situation.
Consolidated Assets, Liabilities, and Equity
€ in millions
Dec. 31, 2024
%
Dec. 31, 2023
%
Non-current assets
85,307
77
83,034
73
Current assets
26,054
23
30,472
27
Total assets
111,361
100
113,506
100
Equity
24,166
22
19,970
18
Non-current liabilities
57,218
51
55,923
49
Current liabilities
29,977
27
37,613
33
Total equity and liabilities
111,361
100
113,506
100
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E.ON Integrated Annual Report 2024
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E.ON SE’s Earnings, Financial, and Asset Situation
The 2024 Financial Year
E.ON SE prepares its Financial Statements in accordance with the German
Commercial Code, the Regulation on the Statute for a European Company
(“SE”) in conjunction with the German Stock Corporation Act, and the
Electricity and Gas Supply Act (Energy Industry Act; German abbreviation:
“EnWG”).
Balance Sheet of E.ON SE (Summary)
December 31
€ in millions
2024
2023
Intangible assets
0
0
Property, plant, and equipment
11
14
Financial assets
48,679
46,808
Non-current assets
48,690
46,822
Receivables from affiliated companies
12,526
15,156
Other receivables and assets
1,410
1,244
Liquid funds
4,473
4,642
Current assets
18,409
21,042
Accrued expenses
113
85
Asset surplus after offsetting of benefit
obligations
23
16
Total assets
67,235
67,965
Equity
12,434
12,359
Provisions
3,640
3,912
Bonds
20,288
16,592
Liabilities to affiliated companies
29,944
34,385
Other liabilities
698
460
Deferred income
231
257
Total equity and liabilities
67,235
67,965
The increase in financial assets consists mainly of an increase in loans to
affiliated companies (€2,038 million) and a decline in other securities
(-€165 million). Loans were issued mainly to Westnetz GmbH (€1,100
million), EG.D Holding, a.s. (formerly EG.D, a.s.) (€642 million), and
Bayernwerk AG (€500 million). On the other hand, retired loans totaled
€607 million and consisted principally of loans repaid by Westnetz GmbH
(€250 million), E.ON UK Holding Company Limited (€200 million), and
HanseWerk AG (€100 million).
The decrease in receivables from affiliated companies is mainly attributable
to lower receivables from profit-pooling agreements with subsidiaries (-
€2,119 million) and to a decline in claims stemming from intra-Group
financing (-582 million). The increase in other receivables results mainly
from higher income tax receivables plus interest (+€159 million).
The change in equity reflects changes in treasury shares under the
employee stock-purchase program conducted in 2024 (€17 million) along
with a €58 million increase in net income available for distribution.
The decrease in provisions results mainly from the fact that provisions for
pensions declined by €146 million.
E.ON SE issued new bonds in the amount of €4,949 million in the 2024
financial year and repaid bonds in the amount of €1,250 million.
The decrease in liabilities to affiliated companies of €4,422 million reflects
a decline in intra-Group financing.
Information on treasury shares can be found in Note 11 to the Financial
Statements of E.ON SE and Note 19 to the Consolidated Financial
Statements.
Income Statement of E.ON SE (Summary)
€ in millions
2024
2023
Income from equity interests
2,208
4,011
Financial result
-587
-743
Other expenditures and income
-440
-1,155
Taxes
262
-160
Net income
1,443
1,953
Profit carryforward from the prior year
1,412
1,494
Net income transferred to retained earnings
0
-650
Net income available for distribution
2,855
2,797
E.ON SE is the holding company of the E.ON Group. As such, its earnings
situation is affected by income from equity interests. The main
contributors to positive income from equity interests were income from the
transfer of profits from E.ON Finanzanlagen GmbH in the amount of
€1,751 million, E.ON Energie AG in the amount of €352 million, and E.ON
Beteiligungen GmbH in the amount of €52 million. E.ON Beteiligungen
GmbH’s profit transfer in the 2024 financial year was reduced by €1,722
million from the merger loss resulting from an intra-Group structuring
measure (merger of a subsidiary).
The financial result for 2024 includes a €92 million improvement in the net
interest result. This reflects the above-described changes in the Balance
Sheets resulting from intra-Group and extra-Group financing that, on
balance, led to an improvement in E.ON SE’s net interest result.
The negative balance of other income and expenses in 2024 resulted
primarily from €246 million in expenses for purchased third-party services,
€226 million in personnel-related expenses, €98 million in auditing and
consulting services, and €2 million in net expenses from currency effects.
The prior-year figure includes €489 million in losses due to the transfer of
MEON Pensions GmbH & Co. KG to E.ON SE.
The activities of the company E.ON SE within the meaning of Section 6b (3)
of the Energy Industry Act consist mainly of other activities outside the
electricity and gas sector. In addition, E.ON SE provides a relatively limited
degree of energy-specific services for network operations relating to
electricity distribution and/or gas distribution and prepares activity
statements for these services. The resulting earnings, individually and in
total, are minimal (about -€0.1 million).
In the year under review, total tax income amounted to €262 million
relating to taxes for the year under review as well as taxes for prior years.
This consists of tax income for prior years of €293 million, a tax expense of
€24 million for the year under review, and an expense from other taxes of
€7 million. Tax income for prior years includes €198 million for a refund
claim stemming from a concluded redress procedure.
E.ON SE functions as the E.ON Group’s holding company. As such, it is
largely dependent on E.ON Group’s development in terms of business
performance, situation, and anticipated development and the associated
risks and chances. It is therefore generally subject to the same risks and
chances as the E.ON Group as are described in the Risks and Chances
Report.
The dividend and its development constitutes the most important key
performance indicator for E.ON SE’s Financial Statements. In line with the
prior-year forecast of dividend growth of at least 5 percent annually, on the
Annual Shareholders Meeting in 2025, the Management Board will
propose that net income available for distribution be used to pay a dividend
of €0.55 per ordinary share and the remaining amount of €1,418 million to
be carried forward to the next financial year. Management’s proposal for
the use of net income available for distribution is based on the number of
ordinary shares on February 19, 2025, the date the Financial Statements of
E.ON SE were prepared.
The complete Financial Statements of E.ON SE, with an unqualified opinion
issued by the auditor, KPMG AG, will be announced in the Federal Gazette
(Bundesanzeiger).
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E.ON Integrated Annual Report 2024
97
Outlook
The E.ON SE Management Board reaffirmed its dividend policy that
foresees annual growth in dividend per share of up to 5 percent through
the dividend for the 2028 financial year. This also applies to dividend
growth of up to 5 percent for the 2025 financial year. E.ON will aim for an
annual increase in dividend per share after 2028 as well. In E.ON’s
strategy, sustainability with an emphasis on climate-neutral economic
activities is a key growth factor that will enable E.ON to meet its dividend
targets.
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E.ON Integrated Annual Report 2024
98
Forecast Report
Business Environment
Macroeconomic Situation
The ongoing geopolitical crises and associated uncertainties impact
economic development as well and are thus factored into economic growth
forecasts. The OECD expects the global economy to grow by 3.3 percent in
2025 and 2026.
These forecasts assume that inflation will continue to fall and that global
trade will recover. An increase in trade tensions and protectionist
tendencies, however, could affect supply chains and consumer prices and
thus hinder economic growth.
The OECD forecasts that the eurozone economy will expand by 1.3 percent
in 2025 and 1.5 percent in 2026. Europe’s economy is expected to recover
slowly, although individual countries will need to reduce their debt while
stimulating growth.
The OECD anticipates that Germany’s GDP will grow by 0.7 percent in
2025 and 1.2 percent in 2026. In mid-2024 experts expected slightly
higher growth rates. The reasons for the lower expectations include the
shortage of skilled workers and weak domestic consumption. The forecasts
assume low inflation rates (2.0 percent in 2025 and 1.9 percent in 2026)
and rising wages, which are expected to support real incomes and private
consumption. Companies’ high reserves and gradually declining interest
rates are expected to boost private investment. Political uncertainties are
likely to continue to weigh on the investment climate. It is also assumed
that exports will gradually recover owing to rising demand from key
trading partners.
General Statement on E.ON’s Anticipated Development
The growth strategy adopted in 2021 as a continuation of the Group’s far-
reaching transformation in the preceding years proved to be correct and
resilient in 2024 as well. In our view, the strategic elements of
sustainability and digitalization, which remain valid and underscore E.ON’s
growth ambitions, are precisely the success factors that will accelerate the
energy system’s transformation.
Anticipated Earnings and Financial Situation
Forecast Earnings Performance
The most important key performance indicators for managing the E.ON
Group are adjusted EBITDA, investments, and earnings per share from
adjusted net income (“EPS”). E.ON expects Group adjusted EBITDA of €9.6
to €9.8 billion in the 2025 financial year. It anticipates adjusted net income
of €2.85 to €3.05 billion, or €1.09 to €1.17 per share in 2025 (based on
around 2,612 million shares outstanding). The goal of our dividend policy is
to offer our shareholdings attractive dividend growth of up to 5 percent
annually. The E.ON SE’s Earnings, Financial, and Asset Situation chapter
contains additional information.
Forecast by segment
Adjusted EBITDA1: 2025 Plan
€ in billions
Energy Networks
7.4 to 7.6
Energy Infrastructure Solutions
0.55 to 0.65
Energy Retail
1.6 to 1.8
Corporate Functions/Other
about -0.1
E.ON Group
9.6 to 9.8
1Adjusted for non-operating effects.
E.ON expects Energy Networks to record a significant earnings increase in
2025 compared with the past financial year. This performance will result
mainly from further growth in the regulated asset base due to additional
investments along with an anticipated normalization of wheeling volume in
Germany. In addition, catch-up effects for costs incurred in prior years for
network losses that were not fully covered are expected in Hungary.
E.ON anticipates that Energy Infrastructure Solutions’ earnings will be
higher in 2025 relative to the past financial year. We expect the
commissioning of new customer projects to increase earnings streams and
sales volume to normalize.
Energy Retail’s earnings are expected to be slightly below the prior-year
figure, mainly because earnings at the B2B business in the United Kingdom
rose significantly in 2024.
Earnings at Corporate Functions/Other are expected to increase markedly
relative to the past financial year. Higher earnings at our generation
activities in Turkey and the non-recurrence of marketing expenditures to
reposition the E.ON brand will have a positive impact.
Adjusted net income and earnings per share from adjusted net income
(“EPS”) are expected to be above the prior-year level. The positive EBITDA
performance will be partially diminished by an increase in depreciation
charges in the wake of higher investments as well as rising interest
expenses.
Planned Investments
Investments in the sustainable expansion and digital transformation of
energy networks and customer solutions operations form the basis for the
value-driven growth E.ON aims to achieve. Investments of around €8.6
billion are therefore planned for the 2025 financial year.
E.ON will make most of these investments in its Energy Networks
segment, the backbone of a successful energy transition. Investments will
go toward expanding, enhancing, and modernizing networks, switching
equipment, and metering and control technology in order to ensure the
reliable, uninterrupted, and sustainable distribution of electricity and to
meet rising energy demand. In addition, E.ON will invest in the
digitalization of network planning, monitoring, and control.
Investments at Energy Infrastructure Solutions will mainly go toward
business expansion in our markets in Germany, the United Kingdom, and
Sweden.
At Energy Retail, E.ON will invest in advanced IT platforms, smart charging
solutions for eMobility, and integrated energy solutions.
Corporate Functions/Other’s investments will go mainly toward Group-
wide IT infrastructure and digital platforms for our three business divisions:
Energy Networks, Energy Infrastructure Solutions, and Energy Retail.
Cash-Effective Investments: 2025 Plan
€ in billions
Percentages
Energy Networks
~6.9
80
Energy Infrastructure Solutions
~1.0
12
Energy Retail
~0.6
7
Corporate Functions/Other
~0.1
1
E.ON Group
~8.6
100
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Risks and Chances Report
E.ON’s risk management system has three main components:
• an internal monitoring system
• a management information system
• the Enterprise Risk Management (“ERM”) system.
The internal monitoring system consists of organizational and preventive
measures (such as policies, work instructions, and approvals processes) as
well as internal controls and audits.
Management information systems are used to provide meaningful
information about the Company’s risks and chances and enable potential
risks to be identified at an early stage so that they can be addressed
proactively. Reports from the business units and central corporate
functions such as Controlling, Finance, Accounting, and Internal Audit play
a key role in the early identification and management of risks.
Enterprise Risk Management is a risk management system in the narrower
sense. It is based on a centralized governance approach and led by the
Group Risk department.
The Objective of Enterprise Risk Management
The objective of Enterprise Risk Management is to enable management to
make a well-founded and realistic assessment of both the risks and
chances of planned business activities. It provides:
• a central overview of individual and aggregated risks and chances as well
as
• transparency on E.ON’s risk position in compliance with legal
requirements including KonTraG, BilMoG, and BilReG.
Risk management is based on a centralized governance approach that has
standardized processes for risk identification, evaluation, continual
monitoring, detailed reporting, and the design of suitable countermeasures.
Group Controlling & Risk division’s Group Risk department manages the
entire process on behalf of the E.ON SE Risk Committee. All identified risks
and chances are assigned to an accountable risk owner and periodically
recorded in a structured bottom-up process.
The diagram illustrates the structure of E.ON’s Risk Management system.
Enterprise Risk Management
E.ON’s ERM has the following core components:
• systematic risk and chance identification
• risk and chance analysis and evaluation
• management and monitoring of risks and chances
• analysis of preventive measures and countermeasures
• documentation and reporting.
Internal Audit reviews E.ON’s ERM’s effectiveness on a regular basis. Risk
Committees at the Group level and at the local units pursuant to the
provisions of Section 91, Paragraph 2, of the German Stock Corporation
Act relating to the establishment of a risk-monitoring and early warning
system provide a comprehensive overview of risk positions and actively
manage risks in line with E.ON’s defined risk strategy.
The ERM applies to all fully consolidated E.ON Group companies and all
companies valued at equity whose gross book value in the Consolidated
Financial Statements is greater than €50 million. E.ON updates its
inventory of risks and chances on a quarterly basis. E.ON has a
standardized system in place for financial reporting that enables an
automated risk reporting process in which company data are
systematically collected and analyzed.
Risk and Chance Categories
E.ON’s IT-based system for reporting risks and chances encompasses the
following risk categories and examples:
Legal and regulatory risks
• Political and legal risks and chances
• Regulatory risks and chances
• Risks and chances from public consent processes
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Operational and IT risks
• IT and process risks and chances
• Risks and chances relating to asset operations and new-build projects
HSE, HR, and other
• Health, safety, and environmental risks and chances
Market risks
• Risks and chances from the development of commodity prices and
margins and from changes in market liquidity
Strategic risks
• Risks and chances from investments and disposals
Finance and treasury risks
• Credit, interest-rate, liquidity, and foreign-currency risks and chances
• Tax and asset-management risks and chances
E.ON uses a multistep process to systematically identify, evaluate, and
simulate risks and chances. Risks are generally evaluated objectively on the
basis of estimates by in-house experts. The evaluation measures financial
impact on the current earnings plan while factoring in risk-reducing
countermeasures to yield a net risk assessment. For quantifiable risks,
E.ON analyzes the likelihood of occurrence and the potential loss amount.
Events whose likelihood of occurrence is 5 percent or less are classified as
tail events. Tail events are not included in the quantitative simulation.
E.ON’s internal risk management system makes it possible to conduct a
Monte Carlo simulation to produce a risk distribution that is quantified as
the deviation from the earnings plan for adjusted EBITDA. E.ON uses the
5th and 95th percentiles as the worst-case and best-case scenarios. There
is a 90 percent likelihood that the deviation from the Company’s earnings
plan for adjusted EBITDA will remain within these extremes.
The aggregated risk and chance distribution is assigned to impact classes
according to their potential impact on planned adjusted EBITDA:
Impact Classes
Low
x < €50 million
Moderate
€50 million ≤ x < €200 million
Medium
€200 million ≤ x < €500 million
Major
€500 million ≤ x < €2 billion
High
x ≥ €2 billion
Current Risk and Chances Situation
The table below shows the maximum annual aggregated risk and chance
position (aggregated risk distribution) across the time horizon of the
medium-term plan for quantifiable risks and chances (excluding tail events)
for each risk category based on adjusted EBITDA.
The following description of risks and chances by category alludes to the
aforementioned impact classes. It also addresses major/high tail events
and major/high qualitative risks. In the case of qualitative risks (which by
definition are more difficult to assess both in terms of their loss amount
and their probability), a further distinction is made between risks with a
low probability (6 percent < x ≤ 25 percent) and a medium probability (26
percent < x ≤ 50 percent).
Example: in category x, there is a risk y (medium, high) and a risk z (low,
major).
In the case of tail events and qualitative risks, the focus is not only on
E.ON’s key performance indicator, adjusted EBITDA, but also on other
indicators relating to its asset and financial position.
The E.ON Group has major risk positions in the category of market risks
and chances. The categories finance and treasury risks and chances, legal
and regulatory risks and chances, and operational and IT risks and chances
have a medium risk position. As a result, the aggregate risk position of
E.ON SE as a Group is major. In other words, the E.ON Group’s maximum
annual adjusted EBITDA risk ought not to exceed -€500 million to -€2
billion in 95 percent of all cases.
Commodity prices, which rose sharply in prior years in conjunction with the
war in Ukraine, declined significantly in 2024. This has significant positive
implications for the assessment of individual risks as well as, on the
negative side, individual chances relative to the prior year. On the one hand,
commodity prices can affect sales volume and prices at the Energy Retail
business division; on the other, they are a material risk factor for possible
bad debts in the sales business. In addition, lower commodity prices serve
to reduce counterparty risks. Moreover, our major suppliers’ good credit
ratings and systemic relevance continue to render the likelihood of
occurrence very low (tail/major).
At the beginning of 2024, E.ON made its Energy Infrastructure Solutions
business division, which was already established on the market, a separate
reporting unit. Risks and opportunities arising in this business division are
presented if they are at least material.
The energy network business could likewise experience a decline in
wheeling volume, credit losses, price increases for energy to replace
network losses, and redispatch expenditures that lead to lower earnings.
A distinctive feature of several regulatory jurisdictions in Europe in which
we operate networks is that their regulatory mechanisms generally foresee
that volume-driven declines in revenues and price-driven cost increases for
energy to replace network losses can generally be recovered in subsequent
years by corresponding adjustments to network tariffs.
Risks and Chances by Category
Below we present E.ON’s major risks and chances by risk category and
describe the general measures to limit risks. We also consider the above-
described tail risks as well as qualitative risks that could potentially impact
adjusted EBITDA by more than €500 million. In addition, we list risks and
Risk and Chance Position
Worst case (5th percentile)
Best case (95th percentile)
Legal and regulatory risks
Medium
Medium
Operational and IT risks
Medium
Low
HSE, HR, and other
Low
Low
Market risks
Material
Medium
Strategic risks
Moderate
Moderate
Finance and treasury risks
Medium
Medium
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E.ON Integrated Annual Report 2024
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chances that could have similar effects on planned Group net income
and/or cash flow.
Legal and Regulatory Risks
Energy policy decisions at the European and national level present both
risks and chances that are decisive for the Group’s strategic direction.
In the wake of the economic and financial crisis, many EU member states
have introduced interventionist policies, additional taxes, and additional
reporting requirements in recent years (for example, EMIR, MAR, REMIT,
MiFID2). These legal requirements are subject to strict monitoring and
pose potential risks for E.ON. In addition, price moratoriums, regulated
price reductions, and changes to support schemes for renewables create
challenges as well as growth opportunities.
The operation of energy networks is subject to a large degree of
government regulation, which can lead to uncertainty. Laws such as
Germany’s Renewable Energy Sources Act (German abbreviation: “EEG”)
can cause temporary fluctuations in cash flow and adjusted EBITDA.
Insolvencies of plant operators or incorrect feed-in tariffs pose additional
legal and regulatory risks. They could lead to planning uncertainties and, in
some cases, to impairment charge, but at the same time create changes for
reorientation.
In addition, the decommissioning of gas networks and attendant possible
asset-retirement obligations could pose significant risks for the Energy
Networks business division (tail, high). Furthermore, there are increased
risks from potentially higher transmission system fees (upstream network)
in Germany relative to the beginning of the year.
The business operations of the E.ON Group’s Energy Retail business
division and to a lesser extent those of its Energy Infrastructure Solutions
business division subject it to certain risks relating to legal proceedings,
ongoing planning processes, and regulatory changes. But these risks also
relate, in particular, to legal actions and proceedings concerning contract
and price adjustments to reflect market dislocations or (including as a
consequence of the energy transition) an altered business climate in the
power and gas business, alleged price-rigging, and anticompetitive
practices. This poses a major risk (tail/high).
Another significant risk results from the European Court of Justice’s ruling
requiring the establishment of an independent national regulatory agency,
which could have an impact on E.ON’s regulated businesses in Sweden
(low/major).
PreussenElektra faces regulatory risks relating to the dismantling of
decommissioned nuclear power plants.
Overall, this category has a medium risk position and a medium chance
position.
General Measures to Limit Risks
E.ON engages in constructive dialog with government agencies in order to
minimize policy and regulatory risks. It conducts comprehensive project
management to identify early and minimize the risks attending major
investments. E.ON attempts to significantly minimize the potential risks of
legal proceedings by designing appropriate contracts beforehand.
Operational and IT Risks
The operational and strategic management of the E.ON Group relies
heavily on complex information technology (“IT”) and complex operational
technology (“OT”). This dependence creates both risks and chances in
conjunction with information security and operating processes.
Cybersecurity is a key element of E.ON’s risk management, in particular to
protect IT and OT systems against cyberattacks. The focus is on analyzing
potential attacks, securing critical infrastructure, and protecting customer
data and internal business processes. Proactive risk assessment by the
operating units in close collaboration with the Cybersecurity and Enterprise
Risk Management divisions is therefore essential.
E.ON engages with relevant EU member states’ legislative plans to
transpose the NIS 2 Directive into national law to the extent that these
countries permit. It will implement—or already has implemented—the
necessary measures to meet requirements and minimize risks.
E.ON’s network business uses technologically complex production facilities
that pose risks along the entire value chain—from procurement, logistics,
and construction to operations and maintenance. E.ON’s operations in and
outside Germany face risks like power outages, unanticipated operational
disruptions, and rising costs and investments. Such disruptions or extended
downtimes can have a significant negative impact on earnings and costs.
Overall, this category has a moderate risk position and a low chance
position. General project risks include possible delays and unexpected
additional costs.
In addition, extraordinary environmental events could significantly impair
the operation of energy networks and equipment. This could pose an
earnings and liquidity risk for E.ON (tail/major).
Potential environmental damage for which E.ON could be held liable also
represents a risk and could place a financial burden on the Company. In
addition, amendments to environmental laws and regulations may result in
cost increases.
General Measures to Limit Risks
E.ON limits these risks by continually optimizing its network management
and carrying out operational and infrastructure improvements ensure the
reliability of its assets and distribution networks. In addition, E.ON has
factored the operational and financial effects of environmental risks into its
emergency plan. They are part of a catalog of crisis and system-failure
scenarios prepared for the Group by its Incident and Crisis Management
team. Furthermore, in-house and outside experts and advanced
technological measures secure IT systems and prevent misuse of data and
data loss.
HSE Risks
Health and occupational safety are important factors for E.ON. Risks in
these areas can arise both from E.ON’s operating business and from its
social and ecological environment. They include potential risks resulting
from human error and the challenge of managing employee turnover.
Acting responsibly along the entire value chain, communicating with
stakeholders clearly and consistently, and maintaining strong relationships
with interest groups are essential.
Thanks to this holistic approach, the risk and chance position in this
category is currently low.
In addition, E.ON continues to bear responsibility for the company's former
mining activities in North Rhine-Westphalia and Bavaria, which result from
the history of its predecessor entities. This gives rise to obligations that are
classified as low or major depending on the region. As there are potential
claims for damages, these are major individual risks that can only be
assessed qualitatively. This risk is classified as low in terms of probability
of occurrence and as major in terms of the potential amount of loss. There
is also a risk that E.ON will be required to contribute to the costs of mine
drainage (tail/major).
General Measures to Limit Risks
E.ON integrates environmental and social aspects as well as responsible
corporate governance into all its business activities in order to minimize
reputational risks and ensure social acceptance.
E.ON promote the safety and well-being of its employees by conducting
comprehensive training and qualification programs. It also continually
optimizes processes and inspects its equipment and networks on a regular
basis. In addition, E.ON establishes guidelines, quality management
systems, and emergency planning. The E.ON Group has a reasonable level
of insurance coverage against damages.
Market Risks
E.ON’s international market environment is characterized by general risks
relating to the business cycle. E.ON’s Energy Retail business division faces
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E.ON Integrated Annual Report 2024
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increasing competition from new suppliers and more aggressive market
participants, which could potentially put pressure on margins. However,
market developments also create opportunities. For example, wholesale
price developments along with changes in consumption behavior (due, for
example, to milder temperatures in the winter) could affect E.ON’s
earnings situation. Overall, this results in a major risk position and a
medium chance position.
The demand for electric power and natural gas is subject to seasonal
fluctuations. Demand is higher during the cold-weather months of October
through March and lower during the warm-weather months of April
through September. Consequently, sales are higher in the first and fourth
quarters and lower in the second and third quarters. E.ON uses advanced
demand forecasts to optimally manage procurement. Nevertheless, actual
customer demand may deviate owing to external factors, such as weather
conditions and changes in economic activity. E.ON minimizes adverse
business impact amid a volatile price environment by pursuing a prudent
hedging strategy and continually adjusting its procurement programs.
Volatile commodity prices and the time lag between income and
expenditure also create risks and opportunities regarding cash flow.
E.ON procures commodities like power and gas from a variety of sources. It
obtains a considerable proportion on exchanges, which entails regular
collateral payments (initial and variation margins). Price movements can
lead to higher variation margins. There is therefore a significant risk that
E.ON could be affected by high short-term liquidity requirements.
Our E.ON Energy Markets GmbH (“EEM”) subsidiary plays a key role in risk
management. It serves as a central interface to consolidate our commodity
positions and actively manage market price risks as well as credit and
margin (cash flow) risks in order to limit potential fluctuations.
General Measures to Limit Risks
E.ON engages in effective sales controlling and proactive customer
management to limit market price risks. E.ON conducts systematic risk
management to limit exposure to risks of price changes. It encompasses
quantitative key figures, the limitation, pricing, and optimization of risks,
and the strict separation of functions between departments. Furthermore,
E.ON implements a hedging strategy that utilizes derivative financial
instruments that are commonly used in the marketplace. These
instruments are transacted with financial institutions, brokers, power
exchanges, and third parties whose creditworthiness is monitored on an
ongoing basis.
7 This section is also part of the Sustainability Statement. It contains information on the ESRS disclosure requirements ESRS 2 SBM-3 in the context of ESRS E1 para. 18-19 and IRO-1 para. 53c iii. and e as well as in the context of ESRS E1 para. 20-21.
Strategic Risks
The implementation of E.ON’s strategy mainly involves investments in its
core business, but also encompasses targeted acquisitions and disposals.
The success of acquisitions depends to a large degree on the ability to
identify suitable companies, acquire them, and integrate them into the
Group. To obtain approval for certain acquisitions, E.ON may in some cases
be required to divest other businesses or to make concessions that could
potentially influence its business performance. No guarantee can be given
for the expected returns from these investments, which means that there
is a risk that E.ON will not fully achieve its investment targets. This results
in a moderate overall risk position and a moderate chance position
Investments in new geographic markets or businesses harbor the risk of
dealing with new competitors and economic uncertainties. to address the
attending business risks. Planned disposals face the possibility of delays or
lower-than-anticipated disposal proceeds. In addition, after transactions
close E.ON could face major liability risks resulting from contractual
obligations (tail/major).
General Measures to Limit Risks
E.ON minimizes risks relating to acquisitions and investments by
conducting comprehensive due diligence and concluding legally binding
contracts. A multistage approvals process along with shareholding and/or
project controlling support the successful integration of new businesses.
Finance and Treasury Risks
E.ON is exposed to credit risks from its operating activities and through the
use of financial instruments. These risks arise when counterparties do not
meet their obligations in full or only make partial advance payments
(tail/major). E.ON‘s international business operations also expose it to risks
from currency fluctuation, in particular for payments in foreign currencies
(transaction risk) and for the translation of balance sheet items of
subsidiaries outside the eurozone. However, positive developments in
foreign-currency rates can also create chances for E.ON’s operating
business.
E.ON faces earnings risks from financial liabilities based on variable interest
rates and from non-current asset-retirement obligations. Derivative
transactions may result in short-term cash inflows or outflows. This relates
in particular to margin and collateral payments that need to be factored
into our financing strategy.
Non-current investments to cover obligations—particularly for pensions
and asset retirement—are likewise subject price risks that can be
considerable. Tax risks and changes also play a significant role in the
Company’s financial planning.
Overall, this category has a medium risk and chance position. Changes in
discount rates could increase or reduce provisions for pensions and non-
current asset-retirement obligations (tail, major). This represents a
balance-sheet risk. The Company’s refinancing conditions depend heavily
on rating agencies’ credit ratings. A significant downgrade could result in
additional liquidity requirements (tail/high), while a positive business
performance could improve a rating and thus refinancing conditions.
General Measures to Limits Risks
E.ON conducts systematic risk management to control finance and
treasury risks and chances. E.ON monitors its business partners’
creditworthiness and manages its credit risk by obtaining suitable collateral
and setting limits. The E.ON Group’s Risk Committee is regularly informed
about credit risks.
Another component of E.ON’s risk management is a conservative
investment strategy for financial funds and a broadly diversified portfolio.
E.ON also uses derivative and non-derivative financial instruments to
hedge, for example, currency-translation and interest-rate risks.
Notes 30 and 31 to the Consolidated Financial Statements contains
detailed information about derivative financial instruments and hedging
transactions as well as the general principles of E.ON’s risk management
and the quantification of risks relating to commodities, credit, liquidity,
interest rates, and currency translation.
ESG Risks and Chances7
E.ON strives to operate responsibly at all times and therefore monitors its
business activities’ material impacts. Alongside financial aspects, E.ON also
considers environmental, social, and governance (“ESG”) aspects along its
value chain. This encompasses monitoring and assessing ESG risks and
chances as well as their possible impact on the E.ON Group, but also the
impact of E.ON’s business activities on the climate, the environment,
employees, suppliers, and customers. The systematic consideration of
these issues enables the Company to identify opportunities and risks for
business development at an early stage.
E.ON integrate ESG risks and chances into its ERM by considering a variety
of clusters and relevant thresholds. Similar risks are aggregated into group
risks. Calculating the financial impact always factors in mitigation
measures. Consequently, only net risks and changes are reported. ESG
risks are considered as relevant factors in existing risk categories and can
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E.ON Integrated Annual Report 2024
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influence their materiality, such as an increase in the number and intensity
of storms as a result of climate change, which in turn leads to a higher risk
of network interruptions. Like the entire ERM process, the assessment of
ESG risks and chances also refers to the three-year medium-term planning
period. At year-end 2024, E.ON had not identified any material ESG risks
within the meaning of Section 289c, Paragraph 3, Sentence 1, Items 3 and
4 of the German Commercial Code (German abbreviation: “HGB“) that
could have an impact on the E.ON Group.
► E.ON focuses in part on analyzing its risks and changes in the context of
climate change and the energy transition aimed at slowing this change.
E.ON does this in part because of its support of the recommendations of
the Task Force on Climate-Related Financial Disclosures (“TCFD“).
Safeguarding its assets against climate-change impacts and the climate
resilience of its business model are economically relevant to E.ON. Our
analysis therefore includes both physical risks (direct impacts of climate
change, such as extreme weather and rising temperatures) and transitory
risks resulting from the transition to a low-carbon and more climate-
resilient economy (such as changes in consumer preferences, the
regulatory environment, and carbon pricing). We therefore also continually
review a range of climate scenarios, including those that are compatible
with the goal of keeping the global temperature rise well below 2° Celsius.
These include the IEA STEPS, IEA SDS, and IEA NZE 2050 transition
scenarios as well as physical climate scenarios—namely Representative
Concentration Pathway (“RCP”) 4.5, RCP 2.6, RCP 1.9, and RCP 8.55—and
a scenario developed by us.
Physical climate risks are also the focus of the EU Taxonomy Regulation’s
do-no-significant-harm (“DNSH“) provisions (see the “EU Taxonomy”
chapter). They are assigned to the EU environmental objective 2 “climate
change adaptation.“ E.ON assesses DNSH compliance with climate change
adaptation at the Group level. Each E.ON Group business unit is required to
assess and record potential climate risks as part of its risk reporting.
Climate risks are thus identified, assessed, and reported in line with E.ON’s
Enterprise Risk Management Function Policy. Any risks that significantly
jeopardize climate change adaptation are identified in the risk management
process. This basic approach to identifying any potential harm to climate
change adaptation is verified in consultation with relevant specialist
departments.
In addition, E.ON has developed a scenario analysis describing the impact
of three different climate scenarios on E.ON and on individual E.ON
business units through 2050. The scenario analysis is generally prepared
using forward-looking information. Actual outcomes may differ from the
analysis’s findings. We defined three reference scenarios for the analysis.
The conservative scenario foresees global warming of more than 2°
Celsius, the ambitious scenario less than 2°. The fully committed scenario
limits warming to 1.5°. The analysis also involves assessing and identifying
the relevant business units on the basis of key value drivers and related key
performance indicators (“KPIs”). The next step was to develop a scenario
analysis. The analysis is based on the key value drivers identified by the
business units, a risk assessment, and an evaluation of business impacts,
such as seizing business opportunities. The purpose is to assess the
Company’s ability to ensure its long-term profitability by seizing business
opportunities in the transition to a low-carbon future. The last step was to
develop strategic recommendations, which are discussed in the “Goals and
Performance Review” section of the Climate Protection chapter.
This scenario analysis was enlarged and applied to the climate risks defined
in the EU taxonomy. First, E.ON’s main EU taxonomy-aligned economic
activities and its companies making the main contribution to the
corresponding investments were identified. Next, these companies used a
bottom-up process to determine the climate risks for the relevant
economic activities or investments in accordance with the EU taxonomy
catalog. These risks were then subjected to a scenario analysis. A
qualitative risk assessment was performed for each identified climate risk
and economic activity in line with the IPCC scenarios SSP1-2.6 and SSP5-
8.5 for the reference period 2041 to 2060. We update the scenario
analysis each year. The findings of this risk assessment do not differ in
nature from the risks already reported and managed in the ERM.
Regarding the potential damages estimated in the scenario analysis, in
2024 there were again no significant deviations from the so-called
"century events" relating to weather and climate risks already reported in
the ERM. ◄
Management Board’s Evaluation of the Risk and Chances
Situation
The E.ON Group’s overall risk and chances situation at year-end 2024 had
not changed significantly from a structural perspective. The maximum
annual risk for adjusted EBITDA remains classified as major.
As of year-end 2024, the E.ON SE Management Board does not identify
any risk profile that could jeopardize the existence of the Company, the
E.ON Group, or individual segments. E.ON pursues a strong risk
management strategy to identify potential risks early on, manage them
carefully, and successfully safeguard the Company’s continued existence.
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Disclosures Pursuant to Section 289, Paragraph 4, and
Section 315, Paragraph 4 of the German Commercial Code
on the Internal Control System for the Accounting Process
General Principles
E.ON applies Section 315e, Paragraph 1, of the German Commercial Code
(German abbreviation: “HGB”) and prepares its Consolidated Financial
Statements in accordance with International Financial Reporting Standards
(“IFRS”) and the interpretations of the IFRS Interpretations Committee
(“IFRSIC”) that were adopted by the European Commission for use in the
EU as of the end of the financial year and whose application was
mandatory as of the balance-sheet date (see Note 1 to the Consolidated
Financial Statements). Energy Networks (Germany, Sweden, East Central
Europe, and South East Europe), Energy Infrastructure Solutions (“EIS”),
and Energy Retail (Germany, United Kingdom, the Netherlands, Other), and
Corporate Functions/Other are the Company’s IFRS reportable segments.
E.ON SE prepares its Financial Statements in accordance with the German
Commercial Code, the SE Ordinance (in conjunction with the German Stock
Corporation Act; German abbreviation: “AktG”), and the German Energy
Act (German abbreviation: “EnWG”).
E.ON prepares a Combined Group Management Report which applies to
both the E.ON Group and E.ON SE.
Accounting Process
All companies included in the Consolidated Financial Statements must
comply with E.ON’s uniform Accounting and Reporting Guidelines for the
Annual Consolidated Financial Statements and the Interim Consolidated
Financial Statements. These guidelines describe applicable IFRS accounting
and valuation principles. They also explain accounting principles typical in
the E.ON Group, such as those for provisions for nuclear-waste
management, the treatment of financial instruments, the treatment of
regulatory obligations, and deferrals of sales revenues. E.ON regularly
analyzes amendments to laws, new or amended accounting standards, and
other important pronouncements for their relevance to, and consequences
for, the Consolidated Financial Statements and, if necessary, update its
guidelines and systems accordingly.
Corporate Functions defines the roles and responsibilities of various Group
entities in the preparation of E.ON SE’s Financial Statements and the
Consolidated Financial Statements. These roles and responsibilities are
described in a Group Policy document.
8 This section is also part of the Sustainability Statement. It contains information on the ESRS disclosure requirements ESRS 2 GOV-5.
E.ON Group companies are responsible for preparing their financial
statements in a proper and timely manner. They receive substantial
support from Business Service Centers in Regensburg, Germany, and Cluj,
Romania. E.ON SE combines the financial statements of subsidiaries
belonging to its scope of consolidation into its Consolidated Financial
Statements using standard consolidation software. Group Accounting is
responsible for conducting the consolidation and for monitoring adherence
to the guidelines for scheduling, processes, and contents. Monitoring by
means of system-based automated controls is supplemented by manual
checks.
In conjunction with the year-end closing process, additional qualitative and
quantitative information relevant for accounting is compiled. Furthermore,
dedicated quality-control processes are in place for all relevant
departments to discuss and ensure the completeness of important
information on a regular basis.
E.ON SE’s Financial Statements are prepared with SAP software. The
accounting and preparation processes for the Financial Statements are
divided into discrete functional steps. Bookkeeping processes have largely
been outsourced to E.ON’s Business Service Centers. Cluj has the primary
responsibility for processes relating to subsidiary ledgers and several bank
activities. Regensburg has the principal responsibility for processes relating
to the general ledgers. Automated or manual controls are integrated into
each step. Defined procedures ensure that all transactions and the
preparation of E.ON SE’s Financial Statements are recorded, processed,
assigned on an accrual basis, and documented in a complete, timely, and
accurate manner. Relevant data from E.ON SE’s Financial Statements are,
if necessary, adjusted to conform with IFRS and then transferred to the
consolidation software system using SAP-supported transfer technology.
The following explanations about E.ON’s internal control system (“ICS”)
and its general IT controls apply equally to the Consolidated Financial
Statements and to E.ON SE’s Financial Statements.
Internal Control System8
The purpose of the ICS framework and the annual ICS process is to provide
sufficient assurance to prevent error or fraud from resulting in material
misrepresentations in the Financial Statements, the Combined Group
Management Report, the Half-Year Financial Report, the Quarterly
Statements, as well as ESG reporting. Furthermore, they serve to assure
compliance with significant internal and external regulations and to assure
effectiveness and efficiency of business activities. The management of
each unit in the E.ON Group is legally responsible for establishing and
maintaining an adequate and effective internal control system (“ICS”). The
Corporate Governance Declaration can be found on the E.ON website,
www.eon.com, in the Corporate Governance section under "Corporate
Governance Declaration." Corporate Audit’s ICS department is responsible
for the oversight and coordination of the overall ICS process in order to
ensure an effective ICS in the E.ON Group. For this purpose, Corporate
Audit’s ICS department provides the ICS framework and the necessary
tools. An ICS Business Partner (“ICS BP”) is assigned to each unit that is of
importance to the E.ON Group and therefore in the ICS documentation
scope. The ICS BP is responsible for coordinating and monitoring the unit’s
ICS activities and advises and supports management in implementing an
effective internal control system. The unit’s management remains
responsible for the appropriateness and effectiveness of the implemented
ICS. The ICS BP system ensures a uniform approach as well as consistent
and efficient collaboration and fosters continuous improvement by means
of extensive information-sharing among Group companies.
E.ON’s ICS Framework
E.ON’s ICS is based on the globally recognized COSO framework from May
2013 (COSO: The Committee of Sponsoring Organizations of the Treadway
Commission).
The catalog of ICS principles, which defines the minimum requirements for
an effective internal control system, is a key component of E.ON’s ICS. It
contains overarching principles (such as authorization, segregation of
duties, and master data management) as well as specific requirements for
managing potential risks in various areas and processes (such as supplier
monitoring, project management, invoice verification, payments, and ESG
reporting). All fully consolidated companies and majority-owned units are
subject to the ICS principles.
In addition to the ICS principles, certain units of special importance to the
E.ON Group’s Consolidated Financial Statements must fulfill several
additional ICS requirements for selected processes. These requirements
relate to the documentation and assessment of the relevant processes and
controls—the ICS model—as well as reporting to Corporate Audit. The ICS
model defines potential risks for financial reporting, including ESG
reporting, for compliance with important internal and external rules, and
for the operating units’ achievement of their operating targets. The ICS
model also serves as a checklist and provides guidance for the
establishment of internal controls as well as their documentation and
implementation.
A functionally managed digital organization and third-party service
providers provide IT and digital services for the E.ON Group. IT systems
used for accounting as well as IT systems relevant for ESG reporting are
subject to the ICS framework, which includes general IT controls, such as
Combined Group Management Report → Internal Control System
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E.ON Integrated Annual Report 2024
105
access controls, segregation of duties, processing controls, measures to
prevent the intentional and unintentional falsification of the programs,
data, and documents as well as controls related to supplier monitoring.
Each year, qualitative criteria and quantitative materiality aspects (such as
revenues) are used to determine which processes and controls must be
documented and assessed by which E.ON units.
E.ON units in the ICS documentation scope use an ICS documentation
system for this purpose.
The E.ON ICS framework and the E.ON ICS annual process apply to the
Sustainability Statement as part of ESG reporting.
Management Self-Assessment and Control Tests
After E.ON units have documented their processes and controls, the
individual process owners conduct an annual assessment of the design and
the operational effectiveness of the controls embedded in these processes
and the ICS principles. This is known as a management self-assessment.
The assessment is supported by tests of control effectiveness for selective
risk areas. Corporate Audit’s ICS department defines the methodology for
these tests, which are conducted by the process owners or employees
assigned by them.
In addition, the effectiveness of the internal controls is audited by Internal
Audit. These audits are conducted based on a risk-oriented audit plan. Any
identified deficiencies are reported to the relevant companies.
Furthermore, the E.ON Group’s general IT controls that are relevant for the
Consolidated Balance Sheets are audited as part of the audit of the Group’s
Consolidated Financial Statements. Selected controls of the Business
Service Centers in Regensburg and Cluj, the Human Resources Service
Center in Germany (E.ON Country Hub Germany GmbH), and the pension
service company in Germany (Energie Pensions-Management GmbH) are
audited as part of ISAE 3402 audits. In addition, selected controls of the
E.ON Group’s ESG reporting are audited as part of the audit of the
Sustainability Report
The findings of the management self-assessments and the audits are
included in the integrated annual report on the effectiveness of the ICS of
local companies and the entire E.ON Group and are reported to local
management boards and the E.ON SE Management Board. Local
companies must mitigate any reported ICS weaknesses. Corporate Audit
monitors mitigation.
9 This section is part of the combined Group Management Report, but is unaudited.
Sign-Off Process
Based on the self-assessment result and internal and external audit
findings, the respective unit’s management conducts the final Sign-Off.
The final step of the internal evaluation process is the submission of a
formal written declaration confirming the ICS’s effectiveness (“Sign-Off”).
The Sign-Off process is conducted at all levels of the Group companies
before E.ON SE, as the final step, conducts it for the Group as a whole. The
Chairman of the E.ON SE Management Board and the Chief Financial
Officer perform the final Sign-Off for the E.ON Group.
Corporate Audit regularly informs the E.ON SE Supervisory Board’s Audit &
Risk Committee about the ICS for financial reporting and, if necessary,
about any significant deficiencies identified in the E.ON Group’s various
processes.
Statement on the E.ON Group's Internal Control System
and Risk Management System in the Narrower Sense
(Enterprise Risk Management)9
The entire E.ON SE Management Board affirms that it is aware of its
responsibility to establish and maintain an appropriate and effective
internal control system (“ICS”) and enterprise risk management (“ERM”)
system for the E.ON Group. We work to continually enhance the ICS and
ERM in order to eliminate identified weaknesses and ensure the ongoing
improvement of processes and systems. The entire Management Board is
not aware of any circumstances arising from its examination of the ICS and
ERM system and the reporting of the Corporate Audit and Group Risk
functions that speak against the appropriateness and effectiveness of
these systems in all material respects.
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E.ON Integrated Annual Report 2024
106
Disclosures Regarding Takeovers: Disclosures Pursuant to
Section 289a and Section 315a of the German Commercial
Code and Explanatory Report
Composition of Share Capital
The share capital totals €2,641,318,800 and consists of 2,641,318,800
registered shares without nominal value. Each share of stock grants the
same rights and one vote at a Shareholders Meeting.
Restrictions on Voting Rights or the Transfer of Shares
An employee stock-purchase program was offered in 2023 and 2024.
Shares acquired by employees under the employee stock-purchase
program are subject to a blackout period that begins the day ownership of
such shares is transferred to the employee and that ends on December 31
of the next calendar year plus one. As a rule, an employee may not sell such
shares until the blackout period has expired.
Pursuant to Section 71b of the German Stock Corporation Act (German
abbreviation: “AktG”), the Company’s treasury shares give it no rights,
including no voting rights.
Legal Provisions and Rules of the Company’s Articles of
Association Regarding the Appointment and Dismissal of
Management Board Members and Amendments to the
Articles of Association
Pursuant to the Company’s Articles of Association, the Management Board
consists of at least two members. The Supervisory Board decides on the
number of members as well as on their appointment and dismissal.
The Supervisory Board appoints members to the Management Board for a
term not exceeding five years; reappointment is permissible. If several
persons are appointed as members of the Management Board, the
Supervisory Board may appoint one of the members as Chairperson of the
Management Board. If there is a vacancy on the Management Board for a
required member, the court makes the necessary appointment upon
petition by a concerned party in the event of an urgent matter. The
Supervisory Board may revoke the appointment of a member of the
Management Board and of the Chairperson of the Management Board for
serious cause (for further details, see Sections 84 and 85 of the AktG).
Resolutions of the Shareholders Meeting require a majority of the valid
votes cast unless mandatory law or the Articles of Association explicitly
prescribe otherwise. An amendment to the Articles of Association requires
a two-thirds majority of the votes cast or, in cases where at least half of
the share capital is represented, a simple majority of the votes cast unless
mandatory law explicitly prescribes another type of majority.
The Supervisory Board is authorized to decide by resolution on
amendments to the Articles of Association that affect only their wording
(Section 10, Paragraph 7, of the Articles of Association). Furthermore, the
Supervisory Board is authorized to revise the wording of Section 3 of the
Articles of Association upon utilization of authorized or conditional capital.
Management Board’s Power to Issue or Buy Back Shares
Pursuant to a resolution of the Shareholders Meeting of May 16, 2024, the
Management Board is authorized, until May 15, 2029, to have the
Company acquire treasury shares. The shares acquired and other treasury
shares that are in possession of or to be attributed to the Company
pursuant to Sections 71a et seq. of the AktG must altogether at no point
account for more than 10 percent of the Company’s share capital.
At the Management Board’s discretion, the acquisition may be conducted:
• through a stock exchange
• by means of a public offer directed at all shareholders or a public
solicitation to submit offers
• by means of a public offer or a public solicitation to submit offers for the
exchange of liquid shares that are admitted to trading on an organized
market, within the meaning of the German Securities Purchase and
Takeover Law, for Company shares
• by the use of derivatives (put or call options or a combination of both), in
this case by up to an amount equal to 5 percent of the Company’s capital
stock.
These authorizations may be utilized on one or several occasions, in whole
or in partial amounts, in pursuit of one or more objectives by the Company
and also by its affiliated companies or by third parties for the Company’s
account or one of its affiliates’ accounts.
With regard to treasury shares that will be, or have been, acquired based
on the aforementioned authorization and/or prior authorizations by the
Shareholders Meeting, the Management Board is authorized, subject to the
Supervisory Board’s consent and excluding shareholder subscription rights,
to use these shares—in addition to a disposal through a stock exchange or
an offer granting a subscription right to all shareholders—as follows:
• to be sold and transferred against cash consideration
• to be sold and transferred against contributions in kind
• to be used in order to satisfy the rights of creditors of bonds with
conversion or option rights or, respectively, conversion or option
obligations issued by the Company or its Group companies
• to be offered, with or without consideration, for purchase and
transferred to individuals who are or were employed by the Company or
one of its affiliates as well as to board members of affiliates of the
Company, in this case by up to an amount equal to 5 percent of the
Company’s capital stock
• to be used for the purpose of a scrip dividend where shareholders may
choose to contribute their dividend entitlement to the Company in the
form of a contribution in kind in exchange for new company shares.
In addition, the Management Board is authorized to cancel treasury shares,
without such cancellation or its implementation requiring an additional
resolution by the Shareholders Meeting.
These authorizations may be utilized on one or several occasions, in whole
or in partial amounts, separately or collectively, including with respect to
treasury shares acquired by affiliated companies or companies majority-
owned by the Company or by third parties for their account or the
Company’s account.
In each case, the Management Board will inform the Shareholders Meeting
about the utilization of the aforementioned authorization, in particular
about the reasons for and the purpose of the acquisition of treasury shares,
the number of treasury shares acquired, the amount of the registered share
capital attributable to them, the portion of the registered share capital
represented by them, and their equivalent value.
By shareholder resolution adopted at the Annual Shareholders Meeting of
May 16, 2024, the Management Board was authorized, subject to the
Supervisory Board’s approval, to increase, until May 15, 2029, the
Company’s share capital by a total of up to €528 million through one or
more issuances of new registered no-par-value shares against
contributions in cash and/or in kind (authorized capital pursuant to
Sections 202 et seq. of the AktG; “Authorized Capital 2024”). Subject to
the Supervisory Board’s approval, the Management Board is authorized to
exclude shareholders’ subscription rights.
At the Annual Shareholders Meeting of May 16, 2024, shareholders
approved a conditional increase of the Company’s share capital (with the
option to exclude shareholders’ subscription rights) up to the amount of
€264 million (“Conditional Capital 2024”). Note 19 to the Consolidated
Financial Statements contains more information about Conditional Capital
2024.
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E.ON Integrated Annual Report 2024
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Significant Agreements to Which the Company Is a Party
That Take Effect on a Change of Control of the Company
Following a Takeover Bid
The underlying contracts of debt issued since 2007 contain change-of-
control clauses that give the creditor the right of cancellation. This applies,
inter alia, to bonds issued by E.ON SE and E.ON International Finance B.V.
and guaranteed by E.ON SE and other instruments such as credit contracts.
Granting change-of-control rights to creditors is considered good
corporate governance and has become standard market practice. More
information about financial liabilities is contained in the chapter of the
Combined Group Management Report entitled Financial Situation and in
Note 26 to the Consolidated Financial Statements.
Settlement Agreements between the Company and
Management Board Members or Employees in the Case of a
Change-of-Control Event
In the event of a premature termination of a Management Board member’s
service agreement due to a change-of-control event, these agreements
entitle Management Board members to severance and settlement
payments. The entitlement exists if, within 12 months of the change of
control, a Management Board member’s service agreement is terminated
by mutual consent, expires, or is terminated by the Management Board
member; in the latter case, however, only if the member’s Management
Board position is materially affected by the change of control.
Management Board members’ severance payment consists of their base
salary and target bonus plus fringe benefits for two years after termination
of their service agreement. In accordance with the DCGK, these severance
payments are limited to the amount of the annual compensation for the
remaining term of the service agreement. Total compensation for the past
financial year and the expected total compensation for the current financial
year in which the service agreement ends prematurely are used to
calculate the severance payment cap.
The purpose of these contractual agreements is to preserve the
independence of Management Board members.
A change-of-control event would also result in the early payout of virtual
shares under the E.ON Performance Plan.
Other Disclosures Regarding Takeovers
The Company has been notified about the following direct or indirect
interests in its share capital that exceed 10 percent of the voting rights:
• notification on December 10, 2020, by RWE Aktiengesellschaft for 15
percent of total voting rights.
Stock with special rights granting power of control has not been issued. In
the case of stock given by the Company to employees, employees exercise
their rights of control directly and in accordance with legal provisions and
the provisions of the Articles of Association, just like other shareholders.
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Appendix to the Sustainability Statement
Index to the Sustainability Statement [•]
ESRS Disclosure Requirements
References, links and comments
1.
General Information
ESRS 2: General Disclosures
Basis for preparation
BP-1: General basis for preparation of sustainability statements
→ E.ON’s Approach to Sustainability: Processes for Preparing the Sustainability Statement
→ About This Report: Sustainability Statement1 (ESRS BP-1 para. 5a-c)
BP-2: Disclosures in relation to specific circumstances
→ E.ON’s Approach to Sustainability: Processes for Preparing the Sustainability Statement
→ About This Report: Sustainability Statement1 (ESRS BP-2 para. 10-15)
Governance
GOV-1: The role of the administrative, management and supervisory bodies
→ E.ON’s Approach to Sustainability: Sustainability Governance and Management
GOV-2: Information provided to and sustainability matters addressed by the undertaking’s
administrative, management and supervisory bodies
→ E.ON’s Approach to Sustainability: Sustainability Governance and Management
GOV-3: Integration of sustainability-related performance in incentive schemes
→ E.ON’s Approach to Sustainability: Sustainability Governance and Management
GOV-4: Statement on due diligence
→ E.ON’s Approach to Sustainability: Fulfilling Our Due Diligence Obligation
→ Appendix to the Sustainability Statement: Information on due diligence obligations in accordance
with ESRS 2 GOV-4
GOV-5: Risk management and internal controls over Sustainability Reporting
→ E.ON’s Approach to Sustainability: Processes for Preparing the Sustainability Statement
→ Disclosures on the Internal Control System for the Accounting Process: Internal Control System1
(ESRS 2 GOV-5)
Strategy
SBM-1: Strategy, business model and value chain
→ E.ON’s Approach to Sustainability: Sustainability: an Integral Component of E.ON’s Business Model
and Strategy
→ Business Model1 (ESRS 2 SBM-1 para. 40a i. and ii. and para. 42)
→ Strategy1 (ESRS 2 SBM-1 para. 40e-g)
→ EU Taxonomy: Revenues
→ Working Conditions and Employee Development: Progress and Measures
→ Human Rights and Supply Chain Management: Supply Chain Management
SBM-2: Interests and views of stakeholders
→ E.ON’s Approach to Sustainability: Stakeholder Engagement
SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model
→ E.ON’s Approach to Sustainability: Sustainability: an Integral Component of E.ON’s Business Model
and Strategy; Double Materiality Analysis
→ Strategy1 (SBM-3 para. 48b)
→ Climate Protection: Specific Actions, Goals and Performance Review (ESRS E1 para. 18-19)
→ Occupational Health and Safety: E.ON’s Approach (ESRS S1 para. 13-16)
→ Security of Supply: E.ON’s Approach (ESRS S3 para. 8-11)
→ Affordable Energy: E.ON’s Approach (ESRS S4 para. 9-12)
→ Risks and Chances Report 1: ESG Risks and Chances (ESRS E1 para. 18-19)
No disclosure on ESRS 2 SBM-3 para. 48e in 2024, use of phase-in regulation
1The following information is incorporated by reference into the Sustainability Statement. The ESRS disclosure requirements contained in this section are stated in brackets.
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ESRS Disclosure Requirements
References, links and comments
Impact, risk and opportunity management
Disclosures on the materiality assessment process
IRO-1: Description of the processes to identify and assess material impacts, risks and opportunities
→ E.ON’s Approach to Sustainability: Double Materiality Analysis (ESRS 2 IRO-1 and ESRS G1 para. 6)
→ Climate Protection: E.ON’s Approach, Goals and Performance Review (ESRS E1 para. 20-21)
→ Environmental Management: E.ON’s Approach, Specific Actions (ESRS E2 para. 11, E3 para. 8, E4
para. 17 and 19, E5 para. 11)
→ Risks and Chances Report: ESG Risks and Chances1 (ESRS 2 IRO-1 para. 53c iii. and e as well as in
the context of ESRS E1 para. 20-21)
IRO-2: Disclosure requirements in ESRS covered by the undertaking’s sustainability statement
→ E.ON’s Approach to Sustainability: Double Materiality Analysis
→ Appendix to the Sustainability Statement: Index to the Sustainability Statement
→ Appendix to the Sustainability Statement: List of datapoints in cross-cutting and topical standards
that derive from other EU legislation
2.
Environmental information
Disclosures in accordance with Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation)
→ EU Taxonomy
Additional information on E.ON's Approach to compliance with the minimum safeguards can be found
in the Compliance and Anticorruption and Human Rights and Supply Chain Management chapters. The
section “ESG Risks and Chance” in the Risks and Chances Report contains further details on the
approach to avoiding significant adverse effects in terms of Environmental Objective 2 “Climate change
adaptation.”
ESRS E1: Climate Change
Strategy
E1-1: Transition plan for climate change mitigation
→ Climate Protection: E.ON’s Approach, Organization and Responsibilities, Specific Actions, Goals and
Performance Review
Impact, risk and opportunity management
E1-2: Policies related to climate change mitigation and adaptation
→ Climate Protection: Guidelines and Policies
E1-3: Actions and resources in relation to climate change policies
→ Climate Protection: Specific Actions, Goals and Performance Review, Progress and Measures
Metrics and targets
E1-4: Targets related to climate change mitigation and adaptation
→ Climate Protection: Goals and Performance Review, Specific Actions
E1-5: Energy consumption and mix
→ Climate Protection: Progress and Measures
E1-6: Gross Scopes 1, 2, 3 and Total GHG emissions
→ Climate Protection: Progress and Measures
→ Appendix to the Sustainability Statement: Information in accordance with ESRS E1 Application
Requirement 48
E1-7: GHG removals and GHG mitigation projects financed through carbon credits
→ Climate Protection: Progress and Measures
E1-8: Internal carbon pricing
→ Climate Protection: Progress and Measures
E1-9: Anticipated financial effects from material physical and transition risks and potential climate-
related opportunities
No reporting in 2024, use of the Phase-In Regulation
1The following information is incorporated by reference into the Sustainability Statement. The ESRS disclosure requirements contained in this section are stated in brackets.
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ESRS Disclosure Requirements
References, links and comments
Policies MDR-P: Policies adopted to manage material sustainability matters
→ Climate Protection: Guidelines and Policies, Organization and Responsibilities
Actions MDR-A: Actions and resources in relation to material sustainability matters
→ Climate Protection: Specific Actions
→ Sustainable Products and Services: Specific Actions
Metrics MDR-M: Metrics in relation to material sustainability matters
→ Climate Protection: Progress and Measures
→ Sustainable Products and Services: Progress and Measures
Targets MDR-T: Tracking effectiveness of policies and actions through targets
→ Climate Protection: Goals and Performance Review
→ Sustainable Products and Services: Goals and Performance Review
3.
Social information
ESRS S1: Own Workforce
Impact, risk and opportunity management
S1-1: Policies related to own workforce
→ Occupational Health and Safety: Guidelines and Policies
→ Human Rights and Supply Chain Management: Guidelines and Policies
S1-2: Processes for engaging with own workers and workers’ representatives about impacts
→ Occupational Health and Safety: Organization and Responsibilities, Specific Actions
S1-3: Processes to remediate negative impacts and channels for own workers to raise concerns
→ Occupational Health and Safety: Specific Actions
→ Human Rights and Supply Chain Management: Goals and Performance Review
S1-4: Taking action on material impacts on own workforce, and approaches to mitigating material risks
and pursuing material opportunities related to own workforce, and effectiveness of those actions
→ Occupational Health and Safety: Specific Actions, Goals and Performance Review
Metrics and targets
S1-5: Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities
→ Occupational Health and Safety: Goals and Performance Review
S1-6: Characteristics of the undertaking’s employees
→ Working Conditions and Employee Development: Guidelines and Policies, Progress and Measures
→ Diversity, Equity and Inclusion: Progress and Measures
S1-14: Health and safety metrics
→ Occupational Health and Safety: Progress and Measures
Use of the Phase-In Regulation for number of days lost
Policies MDR-P: Policies adopted to manage material sustainability matters
→ Occupational Health and Safety: E.ON’s Approach, Guidelines and Policies, Organization and
Responsibilities
→ Human Rights and Supply Chain Management: Guidelines and Policies
Actions MDR-A: Actions and resources in relation to material sustainability matters
→ Occupational Health and Safety: Specific Actions
→ Human Rights and Supply Chain Management: Goals and Performance Review
Metrics MDR-M: Metrics in relation to material sustainability matters
→ Occupational Health and Safety: Progress and Measures
Targets MDR-T: Tracking effectiveness of policies and actions through targets
→ Occupational Health and Safety: Goals and Performance Review
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ESRS Disclosure Requirements
References, links and comments
ESRS S3: Affected Communities
Impact, risk and opportunity management
S3-1: Policies related to affected communities
→ Security of Supply: Guidelines and Policies
S3-2: Processes for engaging with affected communities about impacts
→ Security of Supply: Organization and Responsibilities
S3-3: Processes to remediate negative impacts and channels for affected communities to raise concerns
→ Security of Supply: E.ON’s Approach
S3-4: Taking action on material impacts on affected communities, and approaches to managing material
risks and pursuing material opportunities related to affected communities, and effectiveness of those
actions
→ Security of Supply: Specific Actions
Metrics and targets
S3-5: Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities
→ Security of Supply: Goals and Performance Review
Policies MDR-P: Policies adopted to manage material sustainability matters
→ Security of Supply: Guidelines and Policies, Organization and Responsibilities
Actions MDR-A: Actions and resources in relation to material sustainability matters
→ Security of Supply: Specific Actions
Metrics MDR-M: Metrics in relation to material sustainability matters
→ Security of Supply: Progress and Measures
Targets MDR-T: Tracking effectiveness of policies and actions through targets
→ Security of Supply: Goals and Performance Review
ESRS S4: Consumers and end-users
Impact, risk and opportunity management
S4-1: Policies related to consumers and end-users
→ Affordable Energy: E.ON’s Approach, Guidelines and Policies
→ Human Rights and Supply Chain Management: Guidelines and Policies
S4-2: Processes for engaging with consumers and end-users about impacts
→ Affordable Energy: Guidelines and Policies, Organization and Responsibilities, Specific Actions
S4-3: Processes to remediate negative impacts and channels for consumers and end-users to raise
concerns
→ Affordable Energy: Specific Actions, Goals and Performance Review
→ Customer Satisfaction: Goals and Performance Review
S4-4: Taking action on material impacts on consumers and end-users, and approaches to managing
material risks and pursuing material opportunities related to consumers and end- users, and
effectiveness of those actions
→ Affordable Energy: Specific Actions, Goals and Performance Review
→ Security of Supply: Specific Actions
Metrics and targets
S4-5: Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities
→ Affordable Energy: Goals and Performance Review
→ Customer Satisfaction: Goals and Performance Review
Policies MDR-P: Policies adopted to manage material sustainability matters
→ Affordable Energy: Guidelines and Policies, Organization and Responsibilities
Actions MDR-A: Actions and resources in relation to material sustainability matters
→ Affordable Energy: Specific Actions
→ Security of Supply: Specific Actions
Metrics MDR-M: Metrics in relation to material sustainability matters
Not applicable as no parameters are defined in ESRS S4 and E.ON does not report any entity-specific
metrics.
Targets MDR-T: Tracking effectiveness of policies and actions through targets
→ Affordable Energy: Goals and Performance Review
→ Customer Satisfaction: Goals and Performance Review
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ESRS Disclosure Requirements
References, links and comments
4.
Governance information
ESRS G1: Business Conduct
Metrics and targets
G1-5: Political influence and lobbying activities
→ Political Dialog
Metrics MDR-M: Metrics in relation to material sustainability matters
→ Political Dialog
5.
Entity-specific Information
Cybersecurity
→ Data Protection, Cybersecurity, and Product Safety
Policies MDR-P: Policies adopted to manage material sustainability matters
→ Data Protection, Cybersecurity, and Product Safety: E.ON’s Approach, Guidelines and Policies,
Organization and Responsibilities
Actions MDR-A: Actions and resources in relation to material sustainability matters
→ Data Protection, Cybersecurity, and Product Safety: Specific Actions
→ Business Resilience Management: E.ON’s Approach, Specific Actions
Metrics MDR-M: Metrics in relation to material sustainability matters
→ Data Protection, Cybersecurity, and Product Safety: Specific Actions, Goals and Performance Review
Targets MDR-T: Tracking effectiveness of policies and actions through targets
→ Data Protection, Cybersecurity, and Product Safety: Goals and Performance Review
Sustainable Finance
→ Sustainable Finance
Policies MDR-P: Policies adopted to manage material sustainability matters
→ Sustainable Finance: Guidelines and Policies, Organization and Responsibilities
→ E.ON’s Approach to Sustainability: Stakeholder Engagement
Actions MDR-A: Actions and resources in relation to material sustainability matters
→ Sustainable Finance: Guidelines and Policies, Specific Actions
→ ESG Asset Management and Pension Assets
Metrics MDR-M: Metrics in relation to material sustainability matters
→ Sustainable Finance: Specific Actions
Targets MDR-T: Tracking effectiveness of policies and actions through targets
→ Sustainable Finance: Organization and Responsibilities, Goals and Performance Review
→ ESG Ratings of E.ON
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List of datapoints in cross-cutting and topical standards that derive from other EU legislation [•]
Disclosure Requirement and
related datapoint
SFDR reference1
Pillar 3 reference2
Benchmark Regulation
reference3
EU Climate Law reference4
Reference
ESRS 2 GOV-1 Board's gender diversity
paragraph 21 (d)
Indicator number 13 of Table #1 of
Annex 1
Commission Delegated Regulation
(EU) 2020/1816(5), Annex II
→ E.ON’s Approach to Sustainability:
Composition, Diversity, and
Competency of the Management Board
and Supervisory Board
ESRS 2 GOV-1 Percentage of board
members who are independent
paragraph 21 (e)
Delegated Regulation (EU)
2020/1816, Annex II
→ E.ON’s Approach to Sustainability:
Composition, Diversity, and
Competency of the Management Board
and Supervisory Board
ESRS 2 GOV-4 Statement on due
diligence paragraph 30
Indicator number 10 Table #3 of
Annex 1
→ E.ON’s Approach to Sustainability:
Fulfilling Our Due Diligence Obligation
→ Appendix to the Sustainability
Statement: Information on due
diligence obligations in accordance with
ESRS 2 GOV-4
ESRS 2 SBM-1 Involvement in activities
related to fossil fuel activities
paragraph 40 (d) i
Indicators number 4 Table #1 of
Annex 1
Article 449a Regulation (EU) No
575/2013; Commission Implementing
Regulation (EU) 2022/2453(6)Table 1:
Qualitative information on
Environmental risk and Table 2:
Qualitative information on Social risk
Delegated Regulation (EU)
2020/1816, Annex II
→ E.ON’s Approach to Sustainability:
Sustainability: an Integral Component
of E.ON’s Business Model and Strategy
→ EU Taxonomy: Revenues
ESRS 2 SBM-1 Involvement in activities
related to chemical production
paragraph 40 (d) ii
Indicator number 9 Table #2 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
E.ON has no involvement in activities
related to the production of chemicals
(paragraph 40(d)(ii)).
ESRS 2 SBM-1 Involvement in activities
related to controversial weapons
paragraph 40 (d) iii
Indicator number 14 Table #1 of
Annex 1
Delegated Regulation (EU)
2020/1818(7), Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
E.ON has no involvement in activities
related to controversial weapons
Paragraph 40(d)(iii).
ESRS 2 SBM-1 Involvement in activities
related to cultivation and production of
tobacco paragraph 40 (d) iv
Delegated Regulation (EU)
2020/1818, Article 12(1) Delegated
Regulation (EU) 2020/1816, Annex II
E.ON has no involvement in activities
related to the cultivation and
production of tobacco Paragraph 40
Letter d (iv).
ESRS E1-1 Transition plan to reach
climate neutrality by 2050
paragraph 14
Regulation (EU) 2021/1119,
Article 2(1)
→ Climate Protection: Organization and
Responsibilities, Specific Actions
ESRS E1-1 Undertakings excluded from
Paris-aligned Benchmarks
paragraph 16 (g)
Article 449a
Regulation (EU) No 575/2013;
Commission Implementing Regulation
(EU) 2022/2453 Template 1: Banking
book-Climate Change transition risk:
Credit quality of exposures by sector,
emissions and residual maturity
Delegated Regulation (EU)
2020/1818, Article12.1 (d) to (g), and
Article 12.2
→ Climate Protection: E.ON’s Approach
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Disclosure Requirement and
related datapoint
SFDR reference1
Pillar 3 reference2
Benchmark Regulation
reference3
EU Climate Law reference4
Reference
ESRS E1-4 GHG emission reduction
targets paragraph 34
Indicator number 4 Table #2 of Annex 1 Article 449a
Regulation (EU) No 575/2013;
Commission Implementing Regulation
(EU) 2022/2453 Template 3: Banking
book – Climate change transition risk:
alignment metrics
Delegated Regulation (EU)
2020/1818, Article 6
→ Climate Protection: Goals and
Performance Review, Specific Actions
ESRS E1-5 Energy consumption from
fossil sources disaggregated by sources
(only high climate impact sectors)
paragraph 38
Indicator number 5 Table #1 and
Indicator n. 5 Table #2 of Annex 1
→ Climate Protection: Progress and
Measures
ESRS E1-5 Energy consumption and
mix paragraph 37
Indicator number 5 Table #1 of Annex 1
→ Climate Protection: Progress and
Measures
ESRS E1-5 Energy intensity associated
with activities in high climate impact
sectors paragraphs 40 to 43
Indicator number 6 Table #1 of Annex 1
→ Climate Protection: Progress and
Measures
ESRS E1-6 Gross Scope 1, 2, 3 and
Total GHG emissions paragraph 44
Indicators number 1 and 2 Table #1 of
Annex 1
Article 449a; Regulation (EU) No
575/2013; Commission Implementing
Regulation (EU) 2022/2453 Template
1: Banking book – Climate change
transition risk: Credit quality of
exposures by sector, emissions and
residual maturity
Delegated Regulation (EU)
2020/1818, Article 5(1), 6 and 8(1)
→ Climate Protection: Progress and
Measures
→ Appendix to the Sustainability
Statement: Information in accordance
with ESRS E1 Application Requirement
48
ESRS E1-6 Gross GHG emissions
intensity paragraphs 53 to 55
Indicators number 3 Table #1 of
Annex 1
Article 449a Regulation (EU) No
575/2013; Commission Implementing
Regulation (EU) 2022/2453 Template
3: Banking book – Climate change
transition risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 8(1)
→ Climate Protection: Progress and
Measures
ESRS E1-7 GHG removals and carbon
credits paragraph 56
Regulation (EU) 2021/1119,
Article 2(1)
→ Climate Protection: Progress and
Measures
ESRS E1-9 Exposure of the benchmark
portfolio to climate-related physical
risks paragraph 66
Delegated Regulation (EU)
2020/1818, Annex II Delegated
Regulation (EU) 2020/1816, Annex II
No reporting in 2024, use of the Phase-
In Regulation
ESRS E1-9 Disaggregation of monetary
amounts by acute and chronic physical
risk paragraph 66 (a)
ESRS E1-9 Location of significant
assets at material physical risk
paragraph 66 (c).
Article 449a Regulation (EU) No
575/2013; Commission Implementing
Regulation (EU) 2022/2453 paragraphs
46 and 47; Template 5: Banking book -
Climate change physical risk: Exposures
subject to physical risk.
No reporting in 2024, use of the Phase-
In Regulation
ESRS E1-9 Breakdown of the carrying
value of its real estate assets by
energy-efficiency classes
paragraph 67 (c).
Article 449a Regulation (EU) No
575/2013; Commission Implementing
Regulation (EU) 2022/2453 paragraph
34; Template 2:Banking book -Climate
change transition risk: Loans
collateralised by immovable property -
Energy efficiency of the collateral
No reporting in 2024, use of the Phase-
In Regulation
ESRS E1-9 Degree of exposure of the
portfolio to climate-related
opportunities paragraph 69
Delegated Regulation (EU)
2020/1818, Annex II
No reporting in 2024, use of the Phase-
In Regulation
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Disclosure Requirement and
related datapoint
SFDR reference1
Pillar 3 reference2
Benchmark Regulation
reference3
EU Climate Law reference4
Reference
ESRS E2-4 Amount of each pollutant
listed in Annex II of the E-PRTR
Regulation (European Pollutant Release
and Transfer Register) emitted to air,
water and soil, paragraph 28
Indicator number 8 Table #1 of Annex 1
Indicator number 2 Table #2 of Annex 1
Indicator number 1 Table #2 of Annex 1
Indicator number 3 Table #2 of Annex 1
ESRS E2 was not identified as material.
Disclosures on ESRS E2-4 are therefore
not reported.
ESRS E3-1 Water and marine resources
paragraph 9
Indicator number 7 Table #2 of Annex 1
ESRS E3 was not identified as material.
Disclosures on ESRS E3-1 are therefore
not reported.
ESRS E3-1 Dedicated policy
paragraph 13
Indicator number 8 Table 2 of Annex 1
ESRS E3 was not identified as material.
Disclosures on ESRS E3-1 are therefore
not reported.
ESRS E3-1 Sustainable oceans and seas
paragraph 14
Indicator number 12 Table #2 of
Annex 1
ESRS E3 was not identified as material.
Disclosures on ESRS E3-1 are therefore
not reported.
ESRS E3-4 Total water recycled and
reused paragraph 28 (c)
Indicator number 6.2 Table #2 of
Annex 1
ESRS E3 was not identified as material.
Disclosures on ESRS E3-4 are therefore
not reported.
ESRS E3-4 Total water consumption in
m3 per net revenue on own operations
paragraph 29
Indicator number 6.1 Table #2 of
Annex 1
ESRS E3 was not identified as material.
Disclosures on ESRS E3-4 are therefore
not reported.
ESRS 2- SBM-3 - E4 paragraph 16 (a) i
Indicator number 7 Table #1 of
Annex 1
ESRS E4 was not identified as material.
Disclosures on ESRS E4 paragraph 16
(a) i are therefore not reported.
ESRS 2- SBM-3 - E4 paragraph 16 (b)
Indicator number 10 Table #2 of
Annex 1
ESRS E4 was not identified as material.
Disclosures on ESRS E4 paragraph 16
(b) are therefore not reported.
ESRS 2- SBM-3 - E4 paragraph 16 (c)
Indicator number 14 Table #2 of
Annex 1
ESRS E4 was not identified as material.
Disclosures on ESRS E4 paragraph 16
(c) are therefore not reported.
ESRS E4-2 Sustainable land /
agriculture practices or policies
paragraph 24 (b)
Indicator number 11 Table #2 of
Annex 1
ESRS E4 was not identified as material.
Disclosures on ESRS E4-2 are therefore
not reported.
ESRS E4-2 Sustainable oceans / seas
practices or policies paragraph 24 (c)
Indicator number 12 Table #2 of
Annex 1
ESRS E4 was not identified as material.
Disclosures on ESRS E4-2 are therefore
not reported.
ESRS E4-2 Policies to address
deforestation paragraph 24 (d)
Indicator number 15 Table #2 of
Annex 1
ESRS E4 was not identified as material.
Disclosures on ESRS E4-2 are therefore
not reported.
ESRS E5-5 Non-recycled waste
paragraph 37 (d)
Indicator number 13 Table #2 of
Annex 1
ESRS E5 was not identified as material.
Disclosures on E5-5 are therefore not
reported.
ESRS E5-5 Hazardous waste and
radioactive waste paragraph 39
Indicator number 9 Table #1 of Annex 1
ESRS E5 was not identified as material.
Thus, disclosures on E5-5 are therefore
not reported.
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Disclosure Requirement and
related datapoint
SFDR reference1
Pillar 3 reference2
Benchmark Regulation
reference3
EU Climate Law reference4
Reference
ESRS 2- SBM3 - S1 Risk of incidents of
forced labour paragraph 14 (f)
Indicator number 13 Table #3 of
Annex I
ESRS S1 identified as material only in
relation to occupational health and
safety; disclosures on S1 paragraph
14(f) are therefore not reported.
ESRS 2- SBM3 - S1 Risk of incidents of
child labour paragraph 14 (g)
Indicator number 12 Table #3 of
Annex I
ESRS S1 identified as material only in
relation to occupational health and
safety; disclosures on S1 paragraph
14(g) are therefore not reported.
ESRS S1-1 Human rights policy
commitments paragraph 20
Indicator number 9 Table #3 and
Indicator number 11 Table #1 of
Annex I
ESRS S1 identified as material only in
relation to occupational health and
safety;
→ Occupational Health and Safety:
Guidelines and Policies
→ Human Rights and Supply Chain
Management: Guidelines and Policies
ESRS S1-1 Human rights policy
commitments paragraph 20
Indicator number 9 Table #3 and
Indicator number 11 Table #1 of
Annex I
ESRS S1 identified as material only in
relation to occupational health and
safety;
→ Occupational Health and Safety:
Guidelines and Policies
→ Human Rights and Supply Chain
Management: Guidelines and Policies
ESRS S1-1 Due diligence policies on
issues addressed by the fundamental
International Labor Organisation
Conventions 1 to 8, paragraph 21
Delegated Regulation (EU)
2020/1816, Annex II
ESRS S1 identified as material only in
relation to occupational health and
safety;
→ Occupational Health and Safety:
Guidelines and Policies
→ Human Rights and Supply Chain
Management: Guidelines and Policies
ESRS S1-1 processes and measures for
preventing trafficking in human beings
paragraph 22
Indicator number 11 Table #3 of
Annex I
ESRS S1 identified as material only in
relation to occupational health and
safety; disclosures on S1 paragraph 22
are therefore not reported.
ESRS S1-1 workplace accident
prevention policy or management
system paragraph 23
Indicator number 1 Table #3 of Annex I
→ Occupational Health and Safety:
Guidelines and Policies
ESRS S1-3 grievance/complaints
handling mechanisms paragraph 32 (c)
Indicator number 5 Table #3 of Annex I
→ Occupational Health and Safety:
Specific Actions
→ Human Rights and Supply Chain
Management: Goals and Performance
Review
ESRS S1-14 Number of fatalities and
number and rate of work- related
accidents paragraph 88 (b) and (c)
Indicator number 2 Table #3 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
→ Occupational Health and Safety:
Progress and Measures
ESRS S1-14 Number of days lost to
injuries, accidents, fatalities or illness
paragraph 88 (e)
Indicator number 3 Table #3 of Annex I
No reporting in 2024, use of the Phase-
In Regulation
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Disclosure Requirement and
related datapoint
SFDR reference1
Pillar 3 reference2
Benchmark Regulation
reference3
EU Climate Law reference4
Reference
ESRS S1-16 Unadjusted gender pay
gap paragraph 97 (a)
Indicator number 12 Table #1 of
Annex I
Delegated Regulation (EU)
2020/1816, Annex II
ESRS S1 identified as material only in
relation to occupational health and
safety; disclosures on ESRS S1-16 are
therefore not reported.
ESRS S1-16 Excessive CEO pay ratio
paragraph 97 (b)
Indicator number 8 Table #3 of Annex I
ESRS S1 identified as material only in
relation to occupational health and
safety; disclosures on ESRS S1-16 are
therefore not reported.
ESRS S1-17 Incidents of discrimination
paragraph 103 (a)
Indicator number 7 Table #3 of Annex I
ESRS S1 identified as material only in
relation to occupational health and
safety; disclosures on ESRS S1-17 are
therefore not reported.
ESRS S1-17 Non-respect of UNGPs on
Business and Human Rights and OECD
paragraph 104 (a)
Indicator number 10 Table #1 and
Indicator n. 14 Table #3 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818 Art 12 (1)
ESRS S1 identified as material only in
relation to occupational health and
safety; disclosures on ESRS S1-17 are
therefore not reported.
ESRS 2- SBM3 – S2 Significant risk of
child labour or forced labour in the
value chain paragraph 11 (b)
Indicators number 12 and n. 13 Table
#3 of Annex I
ESRS S2 was not identified as material.
Disclosures on ESRS S2 paragraph 11
(b) are therefore not reported.
ESRS S2-1 Human rights policy
commitments paragraph 17
Indicator number 9 Table #3 and
Indicator n. 11 Table #1 of Annex 1
ESRS S2 was not identified as material.
Disclosures on ESRS S2-1 are therefore
not reported.
ESRS S2-1 Policies related to value
chain workers paragraph 18
Indicator number 11 and n. 4 Table #3
of Annex 1
ESRS S2 was not identified as material.
Disclosures on ESRS S2-1 are therefore
not reported.
ESRS S2-1 Non-respect of UNGPs on
Business and Human Rights principles
and OECD guidelines paragraph 19
Indicator number 10 Table #1 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818,
Art 12 (1)
ESRS S2 was not identified as material.
Disclosures on ESRS S2-1 are therefore
not reported.
ESRS S2-1 Due diligence policies on
issues addressed by the fundamental
International Labor Organisation
Conventions 1 to 8, paragraph 19
Delegated Regulation (EU)
2020/1816, Annex II
ESRS S2 was not identified as material.
Disclosures on ESRS S2-1 are therefore
not reported.
ESRS S2-4 Human rights issues and
incidents connected to its upstream and
downstream value chain paragraph 36
Indicator number 14 Table #3 of
Annex 1
ESRS S2 was not identified as material.
Disclosures on ESRS S2-4 are therefore
not reported.
ESRS S3-1 Human rights policy
commitments paragraph 16
Indicator number 9 Table #3 of Annex 1
and Indicator number 11 Table #1 of
Annex 1
ESRS S3 identified as material only in
relation to the topic “Security of
Supply”; disclosures on ESRS S3-1
Human rights policy commitments not
material and not reported
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Disclosure Requirement and
related datapoint
SFDR reference1
Pillar 3 reference2
Benchmark Regulation
reference3
EU Climate Law reference4
Reference
ESRS S3-1 Non-respect of UNGPs on
Business and Human Rights, ILO
principles or and OECD guidelines
paragraph 17
Indicator number 10 Table #1 Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818,
Art 12 (1)
ESRS S3 identified as material only in
relation to the topic “Security of
Supply”; information on ESRS S3-1
Non-respect of UNGPs on Business and
Human Rights, ILO principles or and
OECD guidelines not material and not
reported
ESRS S3-4 Human rights issues and
incidents paragraph 36
Indicator number 14 Table #3 of
Annex 1
ESRS S3 identified as material only in
relation to the topic “Security of
Supply”; disclosures on ESRS S3-4
Human rights issues and incidents not
material and not reported
ESRS S4-1 Policies related to
consumers and end-users paragraph 16
Indicator number 9 Table #3 and
Indicator number 11 Table #1 of
Annex 1
ESRS S4 identified as material only in
relation to the topic “Affordable
Energy”; → Affordable Energy:
Guidelines and Policies
ESRS S4-1 Non-respect of UNGPs on
Business and Human Rights and OECD
guidelines paragraph 17
Indicator number 10 Table #1 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818,
Art 12 (1)
ESRS S4 identified as material only in
relation to the topic “Affordable
Energy”; disclosures on ESRS S4-1
Non-respect of UNGPs on Business and
Human Rights and OECD guidelines not
material and not reported
ESRS S4-4 Human rights issues and
incidents paragraph 35
Indicator number 14 Table #3 of
Annex 1
ESRS S4 identified as material only in
relation to the topic “Affordable
Energy”; disclosures on ESRS S4-4
Human rights issues and incidents not
material and not reported
ESRS G1-1 United Nations Convention
against Corruption paragraph 10 (b)
Indicator number 15 Table #3 of
Annex 1
ESRS G1-1 was not identified as
material. Disclosures on G1-1 are
therefore not reported.
ESRS G1-1 Protection of whistle-
blowers paragraph 10 (d)
Indicator number 6 Table #3 of Annex 1
ESRS G1-1 was not identified as
material. Disclosures on G1-1 are
therefore not reported.
ESRS G1-4 Fines for violation of anti-
corruption and anti-bribery laws
paragraph 24 (a)
Indicator number 17 Table #3 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II)
ESRS G1-1 was not identified as
material. Disclosures on G1-1 are
therefore not reported.
ESRS G1-4 Standards of anti-
corruption and anti-bribery
paragraph 24 (b)
Indicator number 16 Table #3 of
Annex 1
ESRS G1-1 was not identified as
material. Disclosures on G1-1 are
therefore not reported.
1Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019on sustainability-related disclosures in the financial services sector (Sustainable Finance Disclosures Regulation) (OJ L 317, 9.12.2019, p. 1).
2Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Capital Requirements Regulation “CRR”) (OJ L 176, 27.6.2013, p. 1).
3Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No
596/2014 (OJ L 171, 29.6.2016, p. 1).
4Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).
5Commission Delegated Regulation (EU) 2020/1816 of 17 July 2020supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards the explanation in the benchmark statement of how environmental, social and governance factors are reflected in each benchmark
provided and published (OJ L 406, 3.12.2020, p. 1).
6Commission Implementing Regulation (EU) 2022/2453 of 30 November 2022amending the implementing technical standards laid down in Implementing Regulation (EU) 2021/637 as regards the disclosure of environmental, social and governance risks (OJ L 324,19.12.2022, p.1.).
7Commission Delegated Regulation (EU) 2020/1818 of 17 July 2020supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks (OJ L 406, 3.12.2020, p. 17).
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Information on due diligence obligations in accordance with ESRS 2 GOV-4 [•]
Core Elements Of Due Diligence
Section in the Sustainability Statement
Embedding due diligence in governance, strategy and
business model
→ E.ON’s Approach to Sustainability: Sustainability Governance and Management,
Sustainability: an Integral Component of E.ON’s Business Model and Strategy
Engaging with affected stakeholders in all key steps of the
due diligence
→ E.ON’s Approach to Sustainability: Sustainability Governance and Management, Double
Materiality Analysis, Stakeholder Engagement
→ Climate Protection: Guidelines and Policies, Organization and Responsibilities, Specific
Actions
→ Occupational Health and Safety: Guidelines and Policies, Organization and Responsibilities,
Specific Actions
→ Security of Supply: Guidelines and Policies, Organization and Responsibilities, Specific
Actions
→ Affordable Energy: Guidelines and Policies, Organization and Responsibilities, Specific
Actions
→ Data Protection, Cybersecurity, and Product Safety: E.ON’s Approach, Guidelines and
Policies, Organization and Responsibilities, Specific Actions
→ Political Dialog
→ Sustainable Finance: Guidelines and Policies, Organization and Responsibilities, Specific
Actions
Identifying and assessing adverse impacts
→ E.ON’s Approach to Sustainability: Double Materiality Analysis, Sustainability: an Integral
Component of E.ON’s Business Model and Strategy
Taking actions to address those adverse impacts
→ Climate Protection: Specific Actions
→ Occupational Health and Safety: Specific Actions
→ Security of Supply: Specific Actions
→ Affordable Energy: Specific Actions
→ Data Protection, Cybersecurity, and Product Safety: Specific Actions
→ Political Dialog
→ Sustainable Finance: Specific Actions
Tracking the effectiveness of these efforts and
communicating
→ Climate Protection: Goals and Performance Review, Progress and Measures
→ Occupational Health and Safety: Goals and Performance Review, Progress and Measures
→ Security of Supply: Goals and Performance Review, Progress and Measures
→ Affordable Energy: Goals and Performance Review
→ Data Protection, Cybersecurity, and Product Safety: Goals and Performance Review
→ Political Dialog
→ Sustainable Finance: Goals and Performance Review
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Information in accordance with ESRS E1 Application Requirement 48 [•]
Greenhouse Gas Emissions
Retroperspective
Milestones and target years
Total CO₂ equivalents in million metric tons
2024
2023
Change (%)
2019
(Base Year)
2025
2030
2040
2050
Annual % of
target/base
year
Scope 1
Scope 1 Total
1.98
2.01
-2%
3.98
-3
-4
- 4
-
-3
Share from regulated emissions trading systems (in %)
91
-
-
-
-
-
-
-
-
Scope 2
Scope 2 Total (location-based)
3.66
3.46
6%
4.82
-3
-4
- 4
-
-3
Scope 2 Total (market-based)
6.41
6.17
4%
5.73
-3
-4, 5
- 4, 5
-
-3
Scope 1 + 2 Total (location-based)
5.64
5.48
3%
8.80
-3
3.456
<0,69
6
-3
Scope 3
Scope 3 Total (location-based)
64.97
70.69
-8%
120.27
-3
<60,14
-
<12,037
-3
Purchased power sold to end-customers (location-based)1
33.08
35.95
-8%
70.78
-3
-4
-
-4
-3
Combustion of natural gas sold to end-customers2
27.84
30.12
-8%
44.30
-3
-4
-
-4
-3
Scope 3 categories with low impact
4.05
4.62
-12%
5.19
-
-4
-
-4
-3
Scope 1-3 Total (location-based)
70.61
76.17
-7%
129.07
-3
-4
-
-4
-3
1Corresponds to the Scope 3 category Activities related to fuels and energy
2Corresponds to the Scope 3 category Use of products sold
3E.ON's climate targets relate to the years 2030, 2040 and 2050, therefore no further information is required
4E.ON's climate targets relate to the sum of Scope 1 and 2 emissions as well as for the sum of material Scope 3 emissions
5E.ON's climate targets relate to location-based emissions
6Absolute target value of the target was adjusted due to a reduction in Scope 1 emissions as a result of a more precise method for calculating fugitive emissions in connection with our gas distribution networks.
7Target corresponds to 10 percent of the base year
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EU Taxonomy Key Figures and Templates [•]
EU Taxonomy Investments
Financial year 2024
2024
Significant contribution criteria
DNSH criteria ('Does not significantly harm')
Minimum
safeguards3
Proportion of
Taxonomy
aligned (A.1) or
eligible (A.2)
CapEx, year
2023
Category
"enabling
activity"4
Category
"transitional
activity"4
Economic Activities
Code1
CapEx
Proportion of
CapEx, year
2024
Climate
change
mitigation2
Climate
change
adaptation2
Water2
Pollution2
Circular
Economy2
Biodiversity2
Climate change
mitigation2
Climate change
adaptation2
Water2
Pollution2
Circular
Economy2
Biodiversity2
in millions
%
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N
Y;N
Y;N
Y;N
Y;N
Y;N
Y;N
%
E/-
T/-
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (taxonomy-aligned)
Electricity generation using solar photovoltaic technology
CCM 4.1
48
1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
1%
-
-
Electricity generation from wind power
CCM 4.3
20
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Electricity generation from hydropower
CCM 4.5
5
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Electricity generation from geothermal energy
CCM 4.6
1
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Electricity generation from bioenergy
CCM 4.8
1
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Transmission and distribution of electricity
CCM 4.9
5,239
63%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
57%
E
-
Storage of electricity
CCM 4.10
95
1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
1%
E
-
Transmission and distribution networks for renewable and low-carbon gases
CCM 4.14
347
4%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
5%
-
-
District heating/cooling distribution
CCM 4.15
57
1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
1%
-
-
Installation and operation of electric heat pumps
CCM 4.16
49
1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Cogeneration of heat/cool and power from renewable non-fossil gaseous and liquid fuels
CCM 4.19
1
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Cogeneration of heat/cool and power from bioenergy
CCM 4.20
26
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Production of heat/cool from solar thermal heating
CCM 4.21
3
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Production of heat/cool from geothermal energy
CCM 4.22
9
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Production of heat/cool from renewable non-fossil gaseous and liquid fuels
CCM 4.23
17
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Production of heat/cool from bioenergy
CCM 4.24
21
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Production of heat/cool using waste heat
CCM 4.25
12
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Construction, extension and operation of water collection, treatment and supply systems / Water supply
CCM 5.1 /
WTR 2.1
59
1%
Y
N/EL
Y
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
1%
-
-
Construction, extension and operation of water collection, treatment and supply systems / Water supply
CCM 5.1 /
WTR 2.1
38
0%
Y
N/EL
N
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
Infrastructure for personal mobility, cycle logistics
CCM 6.13
35
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
E
-
Infrastructure enabling low-carbon road transport and public transport
CCM 6.15
3
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
E
-
Installation, maintenance and repair of charging stations for electric vehicles in buildings
CCM 7.4
9
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
E
-
Installation, maintenance and repair of instruments and devices for measuring, regulation and contr. energy performance of
buildings
CCM 7.5
193
2%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
2%
E
-
Data-driven solutions for GHG emissions reductions
CCM 8.2
295
4%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
4%
E
-
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
6,583
80%
80%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
71%
Of which Enabling
5,868
71%
71%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
63%
E
Of which Transitional
-
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;N/EL5
EL;N/EL5
EL;N/EL5
EL;N/EL5
EL;N/EL5
EL;N/EL5
Electricity generation using solar photovoltaic technology
CCM 4.1
1
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Electricity generation from hydropower
CCM 4.5
1
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Storage of electricity
CCM 4.10
2
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Transmission and distribution networks for renewable and low-carbon gases
CCM 4.14
23
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
District heating/cooling distribution
CCM 4.15
13
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Installation and operation of electric heat pumps
CCM 4.16
7
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Production of heat/cool from geothermal energy
CCM 4.22
6
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Production of heat/cool from renewable non-fossil gaseous and liquid fuels
CCM 4.23
16
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Production of heat/cool from bioenergy
CCM 4.24
15
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
High-efficiency co-generation of heat/cool and power from fossil gaseous fuels
CCM 4.30
9
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system
CCM 4.31
11
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Infrastructure enabling low-carbon road transport and public transport
CCM 6.15
44
1%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Installation, maintenance and repair of instruments and devices for measuring, regulation and contr. energy performance of
buildings
CCM 7.5
1
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Data processing, hosting and related activities
CCM 8.1
19
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)
168
2%
2%
0%
0%
0%
0%
0%
2%
A. CapEx of Taxonomy-eligible activities (A.1+A.2)
6,752
82%
82%
0%
0%
0%
0%
0%
73%
B. Not taxonomy-eligible activities
CapEx of Taxnomy-non eligible activitites
1,508
18%
TOTAL
8,260
100%
1Climate Change Mitigation: CCM; Climate Change Adaptation: CCA; Water: WTR; Circular Economy: CE; Pollution Prevention and Control: PPC; Biodiversity and ecosystems: BIO.
2Y - Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N - No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective ; N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective.
3Y - Yes; N - No.
4E - Enabling activity; T - Transitional activity.
5EL - Taxonomy eligible activity for the relevant objective; N/EL - taxonomy non-eligible activity for the relevant objective
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E.ON Integrated Annual Report 2024
122
EU Taxonomy Operating Expenses
Financial year 2024
2024
Significant contribution criteria
DNSH criteria ('Does not significantly harm')
Minimum
safeguards3
Proportion of
Taxonomy
aligned (A.1) or
eligible (A.2)
OpEx, year
2023
Category
"enabling
activity"4
Category
"transitional
activity"4
Economic Activities
Code1
OpEx
Proportion of
OpEx, year
2024
Climate change
mitigation2
Climate change
adaptation2
Water2
Pollution2
Circular
Economy2
Biodiversity2
Climate change
mitigation2
Climate change
adaptation2
Water2
Pollution2
Circular
Economy2
Biodiversity2
in millions
%
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N
Y;N
Y;N
Y;N
Y;N
Y;N
Y;N
%
E/-
T/-
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (taxonomy-aligned)
Electricity generation from wind power
CCM 4.3
6
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
1%
-
-
Electricity generation from hydropower
CCM 4.5
7
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Electricity generation from bioenergy
CCM 4.8
1
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Transmission and distribution of electricity
CCM 4.9
807
56%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
59%
E
-
Transmission and distribution networks for renewable and low-carbon gases
CCM 4.14
27
2%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
2%
-
-
District heating/cooling distribution
CCM 4.15
19
1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Installation and operation of electric heat pumps
CCM 4.16
1
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Cogeneration of heat/cool and power from bioenergy
CCM 4.20
5
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Production of heat/cool from bioenergy
CCM 4.24
6
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
1%
-
-
Construction, extension and operation of water collection, treatment and supply systems / Water supply
CCM 5.1 /
WTR 2.1
6
0%
Y
N/EL
Y
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Renewal of water collection, treatment and supply systems / Water supply
CCM 5.2 /
WTR 2.1
5
0%
Y
N/EL
N
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Construction, extension and operation of waste water collection and treatment / Urban waste water treatment
CCM 5.3 /
WTR 2.2
19
1%
Y
N/EL
Y
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Infrastructure for personal mobility, cycle logistics
CCM 6.13
9
1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
1%
E
-
Installation, maintenance and repair of instruments and devices for measuring, regulation and contr. energy performance of
buildings
CCM 7.5
4
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
E
-
Installation, maintenance and repair of renewable energy technologies
CCM 7.6
18
1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
2%
E
-
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
940
65%
65%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
67%
Of which Enabling
838
58%
58%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
63%
E
Of which Transitional
-
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;N/EL5
EL;N/EL5
EL;N/EL5
EL;N/EL5
EL;N/EL5
EL;N/EL5
District heating/cooling distribution
CCM 4.15
1
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Installation and operation of electric heat pumps
CCM 4.16
2
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Production of heat/cool from geothermal energy
CCM 4.22
1
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Production of heat/cool from renewable non-fossil gaseous and liquid fuels
CCM 4.23
3
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Production of heat/cool from bioenergy
CCM 4.24
5
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
High-efficiency co-generation of heat/cool and power from fossil gaseous fuels
CCM 4.30
8
1%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
1%
Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system
CCM 4.31
3
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Infrastructure enabling low-carbon road transport and public transport
CCM 6.15
3
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)
26
2%
2%
0%
0%
0%
0%
0%
2%
A. Turnover of Taxonomy-eligible activitites (A.1+A.2)
966
67%
67%
0%
2%
0%
0%
0%
69%
B. Not taxonomy-eligible activities
-
0%
Turnover of Taxonomy-non eligible activitites
476
33%
TOTAL
1,442
100%
1Climate Change Mitigation: CCM; Climate Change Adaptation: CCA; Water: WTR; Circular Economy: CE; Pollution Prevention and Control: PPC; Biodiversity and ecosystems: BIO.
2Y - Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N - No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective ; N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective.
3Y - Yes; N - No.
4E - Enabling activity; T - Transitional activity.
5EL - Taxonomy eligible activity for the relevant objective; N/EL - taxonomy non-eligible activity for the relevant objective.
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E.ON Integrated Annual Report 2024
123
EU Taxonomy Revenues
Financial year 2024
2024
Significant contribution criteria
DNSH criteria ('Does not significantly harm')
Minimum
safeguards3
Proportion of
Taxonomy
aligned (A.1) or
eligible (A.2)
revenues, year
2023
Category
"enabling
activity"4
Category
"transitional
activity"4
Economic Activities
Code1
Revenues
Proportion of
Revenues, year
2024
Climate change
mitigation2
Climate change
adaptation2
Water2
Pollution2
Circular
Economy2
Biodiversity2
Climate change
mitigation2
Climate change
adaptation2
Water2
Pollution2
Circular
Economy2
Biodiversity2
in millions
%
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N
Y;N
Y;N
Y;N
Y;N
Y;N
Y;N
%
E/-
T/-
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (taxonomy-aligned)
Electricity generation using solar photovoltaic technology
CCM 4.1
6
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Transmission and distribution of electricity
CCM 4.9
19,828
25%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
17%
E
-
Storage of electricity
CCM 4.10
23
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
E
-
District heating/cooling distribution
CCM 4.15
192
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Installation and operation of electric heat pumps
CCM 4.16
3
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Cogeneration of heat/cool and power from renewable non-fossil gaseous and liquid fuels
CCM 4.19
15
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Production of heat/cool from solar thermal heating
CCM 4.21
1
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Production of heat/cool from bioenergy
CCM 4.24
38
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Construction, extension and operation of water collection, treatment and supply systems / Water supply
CCM 5.1 /
WTR 2.1
7
0%
Y
N/EL
Y
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Renewal of water collection, treatment and supply systems / Water supply
CCM 5.2 /
WTR 2.1
15
0%
Y
N/EL
N
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Construction, extension and operation of waste water collection and treatment / Urban waste water treatment
CCM 5.3 /
WTR 2.2
25
0%
Y
N/EL
Y
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
-
-
Infrastructure for personal mobility, cycle logistics
CCM 6.13
67
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
E
-
Infrastructure enabling low-carbon road transport and public transport
CCM 6.15
7
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
E
-
Installation, maintenance and repair of charging stations for electric vehicles in buildings
CCM 7.4
6
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
E
-
Installation, maintenance and repair of instruments and devices for measuring, regulation and contr. energy performance of
buildings
CCM 7.5
434
1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
1%
E
-
Installation, maintenance and repair of renewable energy technologies
CCM 7.6
158
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
E
-
Data-driven solutions for GHG emissions reductions
CCM 8.2
343
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
E
-
Professional services related to energy performance of buildings
CCM 9.3
37
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
E
-
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)
21,205
26%
26%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
19%
Of which Enabling
20,903
26%
26%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
19%
E
Of which Transitional
-
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;N/EL5
EL;N/EL5
EL;N/EL5
EL;N/EL5
EL;N/EL5
EL;N/EL5
Electricity generation using solar photovoltaic technology
CCM 4.1
11
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Electricity generation from hydropower
CCM 4.5
1
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Transmission and distribution networks for renewable and low-carbon gases
CCM 4.14
80
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Installation and operation of electric heat pumps
CCM 4.16
29
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
High-efficiency co-generation of heat/cool and power from fossil gaseous fuels
CCM 4.30
5
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Infrastructure enabling low-carbon road transport and public transport
CCM 6.15
11
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)
137
0%
0%
0%
0%
0%
0%
0%
1%
A. Turnover of Taxonomy-eligible activities (A.1+A.2)
21,342
27%
27%
0%
0%
0%
0%
0%
19%
B. Not taxonomy-eligible activities
Turnover of Taxonomy-non eligible activitites
58,777
73%
TOTAL
80,119
100%
1Climate Change Mitigation: CCM; Climate Change Adaptation: CCA; Water: WTR; Circular Economy: CE; Pollution Prevention and Control: PPC; Biodiversity and ecosystems: BIO.
2Y - Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N - No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective ; N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective.
3Y - Yes; N - No.
4E - Enabling activity; T - Transitional activity.
5EL - Taxonomy eligible activity for the relevant objective; N/EL - taxonomy non-eligible activity for the relevant objective.
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Taxonomy eligibility and
alignment
per environmental
objective1
Proportion of CapEx/Total CapEx
Proportion of OpEx/Total OpEx
Proportion of revenue/Total revenue
Aligned per objective
Eligible per objective
Aligned per objective
Eligible per objective
Aligned per objective
Eligible per objective
CCM2
80%
82%
65%
67%
26%
27%
CCA3
0%
0%
0%
0%
0%
0%
WTR4
1%
1%
0%
0%
0%
0%
CE5
0%
0%
0%
0%
0%
0%
PPC6
0%
0%
0%
0%
0%
0%
BIO7
0%
0%
0%
0%
0%
0%
1Disclosures according to Annex II Footnote c) of the amended version of the Delegated Regulation (EU) 2021/2178.
2Climate Change Mitigation: CCM.
3Climate Change Adaptation: CCA.
4Water: WTR.
5Circular Economy: CE.
6Pollution Prevention and Control: PPC.
7Biodiversity and ecosystems: BIO.
CapEx Template 1: Nuclear and fossil gas related activities
Row
Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste
from the fuel cycle.
No
2
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes
such as hydrogen production, as well as their safety upgrades, using best available technologies.
No
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as
hydrogen production from nuclear energy, as well as their safety upgrades.
No
Row
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.
No
5
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.
Yes
6
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.
Yes
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CapEx Template 2: Taxonomy-aligned economic activities (denominator)
Amount and proportion (in monetary amounts and as percentages)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Row
Economic activities
€ in millions
in % € in millions
in % € in millions
in %
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
6,583
80
6,583
80
-
-
8
Total applicable KPI
8,260
100
8,260
100
-
-
CapEx Template 3: Taxonomy-aligned economic activities (numerator)
Amount and proportion (in monetary amounts and as percentages)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Row
Economic activities
€ in millions
in % € in millions
in % € in millions
in %
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI
6,583
100
6,583
100
-
-
8
Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI
6,583
100
6,583
100
-
-
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CapEx Template 4: Taxonomy-eligible but not taxonomy-aligned economic activities
Amount and proportion (in monetary amounts and as percentages)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Row
Economic activities
€ in millions
in % € in millions
in % € in millions
in %
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
9
0
9
0
-
-
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
11
0
11
0
-
-
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator
of the applicable KPI
148
2
148
2
-
-
8
Total amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI
168
2
168
2
-
-
CapEx Template 5: Taxonomy non-eligible economic activities
Row
Economic activities
€ in millions
in %
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
2
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
3
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
4
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
5
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
6
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
1,508
18
8
Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI
1,508
18
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OpEx Template 1: Nuclear and fossil gas related activities
Row
Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste
from the fuel cycle.
No
2
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes
such as hydrogen production, as well as their safety upgrades, using best available technologies.
No
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as
hydrogen production from nuclear energy, as well as their safety upgrades.
No
Row
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.
No
5
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.
Yes
6
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.
Yes
OpEx Template 2: Taxonomy-aligned economic activities (denominator)
Amount and proportion (in monetary amounts and as percentages)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Row
Economic activities
€ in millions
in % € in millions
in % € in millions
in %
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
940
65
940
65
-
-
8
Total applicable KPI
1,442
100
1,442
100
-
-
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OpEx Template 3: Taxonomy-aligned economic activities (numerator)
Amount and proportion (in monetary amounts and as percentages)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Row
Economic activities
€ in millions
in % € in millions
in % € in millions
in %
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI
940
100
940
100
-
-
8
Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI
940
100
940
100
-
-
OpEx Template 4: Taxonomy-eligible but not taxonomy-aligned economic activities
Amount and proportion (in monetary amounts and as percentages)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Row
Economic activities
€ in millions
in % € in millions
in % € in millions
in %
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
8
1
8
1
-
-
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
3
0
3
0
-
-
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator
of the applicable KPI
15
1
15
1
-
-
8
Total amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI
26
2
26
2
-
-
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OpEx Template 5: Taxonomy non-eligible economic activities
Row
Economic activities
€ in millions
in %
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
2
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
3
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
4
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
5
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
6
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
476
33
8
Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI
476
33
Revenue Template 1: Nuclear and fossil gas related activities
Row
Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste
from the fuel cycle.
No
2
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes
such as hydrogen production, as well as their safety upgrades, using best available technologies.
No
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as
hydrogen production from nuclear energy, as well as their safety upgrades.
No
Row
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.
No
5
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.
Yes
6
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.
Yes
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Revenue Template 2: Taxonomy-aligned economic activities (denominator)
Amount and proportion (in monetary amounts and as percentages)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Row
Economic activities
€ in millions
in % € in millions
in % € in millions
in %
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
21,205
26
21,205
26
-
-
8
Total applicable KPI
80,119
100
80,119
100
-
-
Revenue Template 3: Taxonomy-aligned economic activities (numerator)
Amount and proportion (in monetary amounts and as percentages)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Row
Economic activities
€ in millions
in % € in millions
in % € in millions
in %
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
-
-
-
-
-
-
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI
21,205
100
21,205
100
-
-
8
Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI
21,205
100
21,205
100
-
-
Combined Group Management Report → Appendix to the Sustainability Statement
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E.ON Integrated Annual Report 2024
131
Revenue Template 4: Taxonomy-eligible but not taxonomy-aligned economic activities
Amount and proportion (in monetary amounts and as percentages)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Row
Economic activities
€ in millions
in % € in millions
in % € in millions
in %
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
5
0
5
0
-
-
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator
of the applicable KPI
132
0
132
0
-
-
8
Total amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI
137
0
137
0
-
-
Revenue Template 5: Taxonomy non-eligible economic activities
Row
Economic activities
€ in millions
in %
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
2
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
3
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
4
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
5
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
6
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
58,777
73
8
Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI
58,777
73
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E.ON Integrated Annual Report 2024
132
Consolidated Statement of Income
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
(1) Summary of Significant Accounting Policies
141
(2) New Standards, Interpretations and Amendments
149
(3) Scope of Consolidation
151
(4) Material Acquisitions, Disposals and Disposal Groups
in 2024
151
(5) Revenue
151
(6) Own Work Capitalized
151
(7) Other Operating Income and Expenses
152
(8) Cost of Materials
152
(9) Financial Result
153
(10) Income Taxes
154
(11) Personnel-Related Information
157
(12) Other Information
158
(13) Earnings per Share
159
(14) Goodwill, Intangible Assets, Right-of-use Assets and
Property, Plant and Equipment
160
(15) Companies Accounted for under the Equity Method
and Other Financial Assets
165
(16) Inventories
167
(17) Receivables and Other Assets
167
(18) Liquid Funds
168
(19) Capital Stock
168
(20) Additional Paid-in Capital
169
(21) Retained Earnings
169
(22) Changes in Other Comprehensive Income
169
(23) Non-Controlling Interests
170
(24) Provisions for Pensions and Similar Obligations
172
(25) Miscellaneous Provisions
179
(26) Liabilities
181
(27) Contingent Liabilities and Other Financial Obligations 186
(28) Litigation and Claims
187
(29) Supplemental Cash Flow Disclosures
187
(30) Derivative Financial Instruments and Hedging
Transactions
188
(31) Additional Disclosures on Financial Instruments
191
(32) Leasing
201
(33) Transactions with Related Parties
203
(34) Segment Reporting
203
(35) Compensation of Supervisory Board and
Management Board
208
(36) Subsequent Events
208
Consolidated Fina ncial Statements
Consolidated Financial Statements → Consolidated Statement of Income
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E.ON Integrated Annual Report 2024
133
Consolidated Statement of Income
Consolidated Statement of Income
€ in millions
Note
2024
2023
Sales including electricity and energy taxes
81,841
95,404
Electricity and energy taxes
-1,722
-1,718
Sales
(5)
80,119
93,686
Changes in inventories (finished goods and work in progress)
-90
79
Own work capitalized
(6)
1,596
1,334
Other operating income
(7)
11,739
38,888
Cost of materials
(8)
-58,990
-64,228
Personnel costs
(11)
-6,534
-6,010
Depreciation, amortization and impairment charges
(14)
-4,401
-3,514
Other operating expenses
(7)
-15,384
-59,548
Thereof: Impairments of financial assets
-558
-984
Income from companies accounted for under the equity method
258
478
Income/loss from equity investments
19
30
Income from continuing operations before interest results and income taxes
8,332
1,195
Interest results
(9)
-1,001
-1,094
Income from other securities, interest and similar income
1,097
1,291
Interest and similar expenses
-2,098
-2,385
Income taxes
(10)
-1,769
598
Income from continuing operations
5,562
699
Income/loss from discontinued operations, net
(4)
–
61
Net income
5,562
760
Attributable to shareholders of E.ON SE
4,531
517
Attributable to non-controlling interests
1,031
243
in €
Earnings per share (attributable to shareholders of E.ON SE)—basic and diluted1
(13)
from continuing operations
1.73
0.18
from discontinued operations
–
0.02
from net income
1.73
0.20
Weighted-average number of shares outstanding (in millions)
2,612
2,611
1Based on weighted-average number of shares outstanding.
Consolidated Financial Statements → Consolidated Statement of Recognized Income and Expenses
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E.ON Integrated Annual Report 2024
134
Consolidated Statement of Recognized Income and Expe nse s
Consolidated Statement of Recognized Income and Expenses
€ in millions
2024
2023
Net income
5,562
760
Remeasurements of defined benefit plans
448
-1,427
Remeasurements of defined benefit plans of companies accounted for under the equity method
-34
149
Income taxes
-283
272
Items that will not be reclassified subsequently to the income statement
131
-1,006
Cash flow hedges
-144
-675
Unrealized changes—hedging reserve
-33
-139
Unrealized changes—reserve for hedging costs
27
13
Reclassification adjustments recognized in income
-138
-549
Fair value measurement of financial instruments
37
76
Unrealized changes
2
39
Reclassification adjustments recognized in income
35
37
Currency-translation adjustments
-193
-15
Unrealized changes—hedging reserve/other
-193
-10
Unrealized changes—reserve for hedging costs
–
2
Reclassification adjustments recognized in income
–
-7
Companies accounted for under the equity method
720
328
Unrealized changes
720
328
Reclassification adjustments recognized in income
–
–
Income taxes
25
217
Items that might be reclassified subsequently to the income statement
445
-69
Total income and expenses recognized directly in equity (other comprehensive income)
576
-1,075
Total recognized income and expenses (total comprehensive income)
6,138
-315
Attributable to shareholders of E.ON SE
5,095
-445
Continuing operations
5,095
-506
Discontinued operations
–
61
Attributable to non-controlling interests
1,043
130
Consolidated Financial Statements → Consolidated Balance Sheets
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E.ON Integrated Annual Report 2024
135
Consolidated Balance Sheets
Consolidated Balance Sheet—Assets
December 31,
€ in millions
Note
2024
2023
Goodwill
(14)
16,573
17,126
Intangible assets
(14)
3,711
3,592
Right-of-use assets
(32)
2,943
2,710
Property, plant and equipment
(14)
44,269
40,749
Companies accounted for under the equity method
(15)
7,111
6,653
Other financial assets
(15)
3,621
3,738
Equity investments
2,752
2,561
Non-current securities
869
1,177
Financial receivables and other financial assets
(17)
1,107
1,079
Operating receivables and other operating assets
(17)
4,173
3,850
Deferred tax assets
(10)
1,763
3,505
Income tax assets
(10)
36
32
Non-current assets
85,307
83,034
Inventories
(16)
1,243
1,940
Financial receivables and other financial assets
(17)
543
1,085
Trade receivables and other operating assets
(17)
15,198
19,005
Income tax assets
(10)
1,093
1,030
Liquid funds
(18)
7,280
7,412
Securities and fixed-term deposits
1,273
1,375
Restricted liquid funds
255
452
Cash and cash equivalents
5,752
5,585
Assets held for sale
(4)
697
–
Current assets
26,054
30,472
Total assets
111,361
113,506
Consolidated Financial Statements → Consolidated Balance Sheets
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E.ON Integrated Annual Report 2024
136
Consolidated Balance Sheet—Equity and Liabilities
December 31,
€ in millions
Note
2024
2023
Capital stock
(19)
2,641
2,641
Additional paid-in capital
(20)
13,316
13,327
Retained earnings
(21)
4,751
1,491
Accumulated Other Comprehensive Income
(22)
-1,853
-2,303
Treasury shares
(19)
-1,014
-1,042
Equity attributable to shareholders of E.ON SE
17,841
14,114
Non-controlling interests (before reclassification)
7,510
7,024
Reclassification related to IAS 32
-1,185
-1,168
Non-controlling interests
(23)
6,325
5,856
Equity
24,166
19,970
Financial liabilities
(26)
34,100
30,823
Operating liabilities
(26)
7,151
8,316
Income tax liabilities
(10)
392
548
Provisions for pensions and similar obligations
(24)
5,181
4,985
Miscellaneous provisions
(25)
8,292
9,028
Deferred tax liabilities
(10)
2,102
2,223
Non-current liabilities
(26)
57,218
55,923
Financial liabilities
(26)
4,964
4,617
Trade payables and other operating liabilities
(26)
19,706
27,397
Income tax liabilities
(10)
615
733
Miscellaneous provisions
(25)
4,292
4,866
Liabilities associated with assets held for sale
(4)
400
–
Current liabilities
29,977
37,613
Total equity and liabilities
111,361
113,506
Consolidated Financial Statements → Consolidated Statement of Cash Flows
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E.ON Integrated Annual Report 2024
137
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
€ in millions
2024
2023
Net income
5,562
760
Income/loss from discontinued operations, net
–
-61
Depreciation, amortization and impairment of intangible assets and of property, plant and equipment
4,401
3,514
Changes in provisions
-1,135
-2,704
Changes in deferred taxes
1,379
-1,546
Other non-cash income and expenses
374
1,065
Gain/loss on disposal of intangible assets and property, plant and equipment, equity investments and securities (>3 months)
23
7
Changes in operating assets and liabilities and in income taxes
-4,931
4,619
Inventories
173
266
Trade receivables
720
-688
Other operating receivables and income tax assets
2,857
22,917
Trade payables
-728
-2,997
Other operating liabilities and income taxes
-7,953
-14,879
Cash provided by (used for) operating activities of continuing operations
5,673
5,654
Cash provided by (used for) operating activities of discontinued operations
–
–
Cash provided by (used for) operating activities (operating cash flow)
5,673
5,654
Proceeds from disposal of intangible assets and property, plant and equipment
103
221
Proceeds from disposal of equity investments
168
46¹
Purchases of investments in intangible assets and property, plant and equipment
-6,971
-6,010
Purchases of investments in equity investments
-528
-453¹
Proceeds from disposal of securities (>3 months) and of financial receivables and fixed-term deposits
2,532
2,636
Purchases of securities (>3 months) and of financial receivables and fixed-term deposits
-2,126
-2,026
1Adjustment of the previous year's figures due to the expansion of investments and desinvestments to include cash inflows and outflows for loans to affiliated non-consolidated companies as well as other
loans.
Consolidated Financial Statements → Consolidated Statement of Cash Flows
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E.ON Integrated Annual Report 2024
138
Consolidated Statement of Cash Flows
€ in millions
2024
2023
Changes in restricted liquid funds
196
-2
Cash provided by (used for) investing activities of continuing operations
-6,626
-5,588
Cash provided by (used for) investing activities of discontinued operations
–
–
Cash provided by (used for) investing activities
-6,626
-5,588
Payments received/made from changes in capital
-190
30
Cash dividends paid to shareholders of E.ON SE
-1,384
-1,331
Cash dividends paid to non-controlling interests
-321
-297
Proceeds from financial liabilities
7,046
5,347
Repayments of financial liabilities
-4,045
-5,593
Cash provided by (used for) financing activities of continuing operations
1,106
-1,844
Cash provided by (used for) financing activities of discontinued operations
–
–
Cash provided by (used for) financing activities
1,106
-1,844
Net increase/decrease in cash and cash equivalents
153
-1,778
Effect of foreign exchange rates on cash and cash equivalents
24
27
Cash and cash equivalents at the beginning of the year1,2
5,585
7,336
Cash and cash equivalents of discontinued operations at the beginning of the period
–
–
Cash and cash equivalents at the end of the period
5,762
5,585
Less: Cash and cash equivalents of discontinued operations at the end of the period
–
–
Cash and cash equivalents of continuing operations at the end of the period2
5,762
5,585
1Cash and cash equivalents of continuing operations at the beginning of the period also include €10 million attributable to the Romanian sales business that was reclassified as a disposal group in the third
quarter of 2024.
2Cash and cash equivalents of continuing operations at the beginning of the period of the previous year also include €12 million attributable to VSEH Group that was desconsolidated in the fourth quarter of
2023.
Consolidated Financial Statements → Consolidated Statement of Changes in Equity
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E.ON Integrated Annual Report 2024
139
Consolidated Statement of Changes in Equity
€ in millions
Changes in accumulated other comprehensive income
Currency translation
adjustments
Cash flow hedges
Capital
stock
Additional
paid-in
capital
Retained
earnings
Hedging
reserve/
other
Reserve for
hedging
costs
Fair value
measure-
ment of
financial
instruments
Hedging
reserve
Reserve for
hedging
costs
Treasury
shares
Equity
attributable
to share-
holders
of E.ON SE
Non-
controlling
interests
(before
reclassi-
fication)
Reclassifi-
cation related
to IAS 32
Non-
controlling
interests
Total
Balance as of January 1, 2023
2,641
13,338
3,217
-2,436
-2
-60
300
-8
-1,067
15,923
7,032
-1,088
5,944
21,867
Change in scope of consolidation
-1
-1
69
69
68
Treasury shares repurchased/sold
-11
25
14
14
Capital increase
21
21
21
Dividends
-1,331
-1,331
-312
-312
-1,643
Share additions/reductions
-46
-46
84
84
38
Net additions/disposals from
reclassification related to IAS 32
-80
-80
-80
Total comprehensive income
-348
382
2
38
-532
13
-445
130
130
-315
Net income/loss
517
517
243
243
760
Other Comprehensive Income
-865
382
2
38
-532
13
-962
-113
-113
-1,075
Remeasurement of
defined benefit plans
-865
-865
-141
-141
-1,006
Changes in accumulated
other comprehensive
income
382
2
38
-532
13
-97
28
28
-69
Balance as of December 31, 2023
2,641
13,327
1,491
-2,054
0
-22
-232
5
-1,042
14,114
7,024
-1,168
5,856
19,970
Consolidated Statement of Changes in Equity
Consolidated Financial Statements → Consolidated Statement of Changes in Equity
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E.ON Integrated Annual Report 2024
140
Consolidated Statement of Changes in Equity
€ in millions
Changes in accumulated other comprehensive income
Currency translation
adjustments
Cash flow hedges
Capital
stock
Additional
paid-in
capital
Retained
earnings
Hedging
reserve/
other
Reserve for
hedging
costs
Fair value
measure-
ment of
financial
instruments
Hedging
reserve
Reserve for
hedging
costs
Treasury
shares
Equity
attributable
to share-
holders
of E.ON SE
Non-
controlling
interests
(before
reclassi-
fication)
Reclassifi-
cation related
to IAS 32
Non-
controlling
interests
Total
Balance as of January 1, 2024
2,641
13,327
1,491
-2,054
0
-22
-232
5
-1,042
14,114
7,024
-1,168
5,856
19,970
Change in scope of consolidation
1
-10
7
1
-1
-8
-8
-9
Treasury shares repurchased/sold
-11
28
17
17
Capital increase
Dividends
-1,384
-1,384
-336
-336
-1,720
Share additions/reductions
-213
-213
-213
Net additions/disposals from
reclassification related to IAS 32
-17
-17
-17
Total comprehensive income
4,643
499
26
-100
27
5,095
1,043
1,043
6,138
Net income/loss
4,531
4,531
1,031
1,031
5,562
Other Comprehensive Income
112
499
26
-100
27
564
12
12
576
Remeasurement of
defined benefit plans
112
112
19
19
131
Changes in accumulated
other comprehensive
income
499
26
-100
27
452
-7
-7
445
Balance as of December 31, 2024
2,641
13,316
4,751
-1,565
0
11
-331
32
-1,014
17,841
7,510
-1,185
6,325
24,166
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
141
Notes
(1) Summary of Significant Accounting Policies
Basis of Presentation
The Consolidated Financial Statements of E.ON SE, Brüsseler Platz 1,
45131 Essen, Germany, registered in the Commercial Register of Essen
District Court under number HRB 28196, have been prepared in
accordance with Section 315e (1) of the German Commercial Code (“HGB”)
and with those International Financial Reporting Standards (“IFRS”) and
IFRS Interpretations Committee interpretations (“IFRS IC”) that were
adopted by the European Commission for use in the EU as of the end of the
fiscal year, and whose application was mandatory as of December 31,
2024. On February 19, 2025, the Board of Management of E.ON SE
approved the Consolidated Financial Statements as of December 31, 2024,
for publication.
Principles
The Consolidated Financial Statements for the E.ON Group (“E.ON” or the
“Group”) were prepared in euros. Unless otherwise stated, all amounts are
shown in millions of euros (€ million). For accounting reasons, rounding
differences may occur. These financial statements relate to the financial
year from January 1 to December 31, 2024. In accordance with IAS 1,
“Presentation of Financial Statements” (“IAS 1”), the Consolidated Balance
Sheets have been prepared using a classified balance sheet structure.
Assets that will be realized within 12 months of the reporting date, as well
as liabilities that are due to be settled within one year of the reporting date,
are generally classified as current. The Consolidated Statement of Income
is classified using the nature of expense method, which is also applied for
internal purposes.
Scope of Consolidation
The Consolidated Financial Statements incorporate the financial
statements of E.ON SE and entities controlled by E.ON (“subsidiaries”).
Control exists when the Group is exposed, or has rights, to variable returns
from its involvement with the investee and has the ability to use its power
over the investee to influence those returns. Control is generally deemed
established when a majority of the voting rights is held. An entity is a
structured entity if control is based on contractual arrangements or other
legal relationships and is not reflected in a majority of voting rights.
The results of the subsidiaries acquired or disposed of during the year are
included in the Consolidated Statement of Income from the date of
acquisition or until the date of their disposal, respectively.
If the issue of shares in subsidiaries or associates to third parties leads to a
reduction in E.ON’s ownership interest in these investees (“dilution”), and
consequently to a loss of control, joint control or significant influence, gains
and losses from these dilutive transactions are included in the income
statement under other operating income or expenses.
Where necessary, adjustments are made to the subsidiaries’ financial
statements to bring their accounting policies into line with those of the
Group. Intercompany receivables, liabilities, expenses and income, and
results are eliminated in the consolidation process.
Associated Companies
An associate is an investee over whose financial and operating policy
decisions E.ON has significant influence and that is not controlled by E.ON
or jointly controlled with E.ON. Significant influence is presumed if E.ON
directly or indirectly holds at least 20 percent, but not more than 50
percent, of an entity’s voting rights. Interests in associated companies are
accounted for using the equity method.
Interests in associated companies accounted for using the equity method
are reported on the balance sheet at cost, adjusted for changes in the
Group’s share of the net assets after the date of acquisition and for any
impairment charges. Pro rata losses that might potentially exceed the
Group’s interest in an associated company when attributable long-term
loans are taken into consideration are generally not recognized. Any
difference between the cost of the investment and the pro rata remeasured
value of its net assets is recognized in the Consolidated Financial
Statements as part of the carrying amount.
Companies accounted for using the equity method are tested for
impairment by comparing the carrying amount with its recoverable
amount. If the carrying amount exceeds the recoverable amount, the
carrying amount is adjusted for this difference. If the reasons for previously
recognized impairment losses no longer exist, such impairment losses are
reversed accordingly.
Joint Ventures
Joint ventures are also accounted for using the equity method. Unrealized
gains and losses arising from transactions with joint-venture companies
are eliminated within the consolidation process on a pro rata basis if they
are material.
Joint Operations
A joint operation exists when E.ON and other investors jointly control an
operation, but unlike a joint venture, they do not have a claim to the
changes in net assets from the operation. Instead, they have direct rights to
individual assets or direct obligations with respect to individual liabilities in
connection with the operation. E.ON recognizes assets and liabilities as
well as revenues and expenses in a joint operation pro rata according to the
rights and obligations attributable to E.ON.
Business Combinations
Business combinations are accounted for using the purchase method,
under which the purchase price is offset against the pro rata share in the
acquired company’s revalued net assets. The fair values are determined
using published exchange or market prices at the time of acquisition in the
case of marketable securities or commodities, for example, and in the case
of land, buildings and major technical equipment, generally using
independent expert reports that have been prepared by third parties. If
exchange or market prices are unavailable for consideration, fair values are
derived from market prices for comparable assets or comparable
transactions. If these values are not directly observable, fair value is
determined using appropriate valuation methods. In such cases, E.ON
determines fair value using the discounted cash flow method by
discounting estimated future cash flows by a weighted-average cost of
capital.
Non-controlling interests can be measured either at cost (partial goodwill
method) or at fair value (full goodwill method). The choice of method can
be made on a case-by-case basis. The partial goodwill method is generally
used within the E.ON Group.
Intangible assets must be recognized separately if they are clearly
separable or if their recognition arises from a contractual or other legal
right. Provisions for restructuring measures may not be recognized in a
purchase price allocation. If the purchase price paid exceeds the
proportional share in the revalued net assets at the time of acquisition, the
positive difference is recognized as goodwill. No goodwill is recognized for
positive differences attributable to non-controlling interests. After a
repeated review, any negative difference is recognized in net income.
Foreign Currency Translation
The Company’s transactions denominated in foreign currency are
translated at the current exchange rate at the date of the transaction. At
each balance sheet date monetary foreign currency items are adjusted to
the exchange rate on the reporting date; any gains and losses resulting
from fluctuations in the relevant currencies are recognized in net income
and reported as other operating income and other operating expenses,
respectively. Gains and losses from the translation of non-derivative
financial instruments used in hedges of net investments in foreign
operations are recognized in equity as a component of other
comprehensive income. The ineffective portion of the hedging instrument
is immediately recognized in net income.
The functional currency as well as the reporting currency of E.ON SE is the
euro. The assets and liabilities of Group companies with a functional
currency other than the euro are translated using the mid-market
exchange rates applicable on the balance sheet date. The income
statements of foreign Group companies with a functional currency other
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
142
than the euro are translated using annual average exchange rates.
Differences arising from the application of both rates are recognized
directly in equity as a component of other comprehensive income.
The following table depicts the movements in exchange rates for the
periods indicated for major currencies of countries outside the European
Monetary Union:
Currencies
ISO
Code
€1, rate at
year-end
€1, annual
average rate
2024
2023
2024
2023
British pound
GBP
0.83
0.87
0.85
0.87
Danish krone
DKK
7.46
7.45
7.46
7.45
Norwegian krone
NOK
11.80
11.24
11.63
11.42
Polish złoty
PLN
4.28
4.34
4.31
4.54
Romanian leu
RON
4.97
4.98
4.97
4.95
Swedish krona
SEK
11.46
11.10
11.43
11.48
Czech crown
CZK
25.19
24.72
25.12
24.00
Turkish lira
TRY
36.74
32.65
35.57
25.76
Hungarian forint
HUF
411.35
382.80 395.30
381.85
US dollar
USD
1.04
1.11
1.08
1.08
Countries classified as hyperinflationary are required by IAS 29 to express
their financial statements in the functional currency of the
hyperinflationary economy in terms of the measuring unit current at the
balance sheet date to reflect current purchasing power. As a result, among
other things, non-monetary assets and liabilities are generally adjusted
using a general price index and a gain or loss on the net monetary position
is recognized. For additional information on the application of IAS 29 in
fiscal year 2024, please refer to Note 15.
Recognition of Income
a) Revenues
Revenues in the Energy Retail segment are generated primarily from the
sale of electricity and gas (conventional and green) to retail customers,
industrial and commercial customers and wholesale markets. For contracts
that do not provide for defined purchase quantities, the performance
obligation consists in particular in the provision and availability of energy
on demand at any time (standing ready obligation). Revenues are also
generated in the German district heating business and from the provision
of sustainable solutions to customers to enhance energy efficiency, energy
autonomy and electromobility.
In the Energy Infrastructure Solutions segment, E.ON offers integrated,
sustainable energy solutions with the goal of sustainably supplying
heating, electricity, steam, and cooling to cities and towns, as well as
commercial and industrial customers. Revenues are mainly generated from
the delivery of district heating and cooling, from the portfolio of
decentralized services for neighborhoods, as well as industrial and
commercial customers, and from products and services to enhance energy
efficiency. This also includes the energy infrastructure sector, where the
performance obligations mainly consist in the installation of block-type
thermal power stations, photovoltaic systems, air-conditioning systems
and heat pumps. This segment also includes the revenues generated from
the smart energy meter business in the United Kingdom.
In the Energy Networks business, mainly earnings from the distribution of
electricity and gas are included in revenues. E.ON makes the electricity and
gas distribution network available to its customers. In the course of
extending electricity and gas networks, E.ON also installs customer
connections and connects renewable energy generating stations to the
grid. In some cases, the fulfillment of performance obligations also entails
construction work on non-owned land. Significant parts of the fees
generated in the Energy Networks segment are regulated and are therefore
subject to efficiency-based upper limits on revenue. Since the introduction
of IFRS 15 with effect from January 1, 2018, revenues no longer include
the fees for the promotion of Renewables because these revenues are
netted with the corresponding cost of materials (net disclosure).
Revenues are generally recognized when E.ON fulfills its performance
obligation by transferring a promised good or service to a customer. An
asset is deemed to be transferred when the customer obtains control of the
asset. The majority of the E.ON Group’s revenues are recognized over time
because customers use these services when they are provided. For all such
revenues, progress is measured using output-based methods, e.g., through
the measurement of services that have already been provided or units that
have been produced or delivered. For construction contracts, the stage of
completion for overtime revenue recognition can be determined using
input-based methods, such as the cost-to-cost method. The methods used
appropriately reflect the pattern of transfer of goods to customers or
provision of services for customers. The relatively subordinate point-in-
time revenue recognition occurs, among other things, on the installation of
solar panels or charging stations in the electromobility business, and for
so-called linear products, where a fixed amount of energy is provided to
commercial customers at a specific point in time. Revenue is recognized
when control is transferred to the customer, which means that no
significant discretionary decisions are required.
Revenues from the sale of goods and services are measured using the
transaction prices allocated to these goods and services. They reflect the
value of the volume supplied, including an estimated value of the volume
supplied to customers between the date of the last invoice and the end of
the period. Monthly advance payments for B2C customers are generally
determined on the basis of historical consumption data, taking into account
current temperature effects. Peak payments are settled at the end of the
settlement period. In B2B, a bottom-up approach is used to calculate
individual rates. Contractually agreed variable consideration may be
allocated to an entire contract or to specific components of a contract,
which is the case with energy supply agreements with a base fee, for which
the variable consideration is allocated in full to the actual supply of energy,
but not to the fundamental willingness to supply the energy. E.ON’s sales
transactions generally are not based on any material finance components.
The average target payment period is generally between 10 and 30 days, in
exceptional cases longer. Refunds to customers are an exception and are
granted if the customer is disconnected from the power supply for an
extended period of time. Cash bonuses or bonus payments to customers
are recognized as refund liabilities and presented as a decrease in revenues
uniformly over the term of the contract. As a rule, no warranties are
granted in the core business. Warranties are only granted in the “Build &
Sell” activities.
Revenues also include interest income from finance leases when the
corresponding activities are part of E.ON’s core business. This interest
income is recognized on the basis of the effective interest method.
b) Interest Income
Interest income is recognized pro rata using the effective interest method.
c) Dividend Income
Dividend income is recognized when the right to receive the distribution
payment arises.
Electricity and Energy Taxes
Electricity and energy taxes are levied on electricity and natural gas
delivered to retail customers and are calculated on the basis of a fixed tax
rate per kilowatt-hour (“kWh”). This rate varies between different classes
of customers. Electricity and energy taxes payable are deducted from sales
revenues on the face of the income statement if those taxes are levied
upon delivery of energy to the retail customer.
Earnings per Share
Basic (undiluted) earnings per share is computed by dividing the
consolidated net income attributable to the shareholders of the parent
company by the weighted-average number of ordinary shares outstanding
during the relevant period. At E.ON, the computation of diluted earnings
per share is identical to that of basic earnings per share because E.ON SE
has issued no potentially dilutive ordinary shares. The increase in the
weighted-average number of shares outstanding resulted primarily from
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
143
the issue of treasury shares in E.ON SE under the voluntary employee stock
purchase program.
Goodwill and Intangible Assets
Goodwill
Goodwill is not amortized, but rather tested for impairment at the cash-
generating unit level on at least an annual basis. The term cash-generating
unit also always includes groups of cash-generating units and is referred to
in simplified form as a cash-generating unit. Goodwill must also be tested
for impairment, during the year, at the level of individual cash-generating
units if events or changes in circumstances indicate that the recoverable
amount of a particular cash-generating unit might be impaired, resulting in
a shortfall in the carrying amount.
Newly created goodwill is allocated to those cash-generating units
expected to benefit from the respective business combination. The cash-
generating units to which goodwill is allocated are generally equivalent to
the operating segments. If goodwill cannot be allocated to individual cash-
generating units without arbitrariness but instead can only be allocated to
groups of cash-generating units, the lowest level within the unit at which
the goodwill is monitored for internal management purposes then includes
several cash-generating units to which the goodwill relates but to which it
cannot be allocated individually. Goodwill impairment testing is performed
in euros, while the underlying goodwill is always carried in the functional
currency.
In a first step, E.ON determines the recoverable amount of a cash-
generating unit on the basis of the fair value (less costs to sell) using
generally accepted valuation procedures. This is based on the mid-term
planning data of the respective cash-generating unit. Valuation is
performed using the discounted cash flow method unless market
transactions or valuations prepared by third parties for comparable assets
which are higher-level in the fair value hierarchy according to IFRS 13 are
available. If needed, a calculation of value in use is also performed.
If the carrying amount exceeds the recoverable amount, the goodwill
allocated to that cash-generating unit is adjusted in the amount of this
difference. Because E.ON generally applies the partial goodwill method,
only that part of the difference that is attributable to the respective partial
goodwill is recognized as an impairment.
E.ON performs the annual testing of goodwill for impairment at the cash-
generating unit level in the fourth quarter on October 1 of each fiscal year.
Impairment charges on the goodwill of a cash-generating unit and reported
in the income statement under “Depreciation, amortization and impairment
charges” may not be reversed in subsequent reporting periods.
Intangible Assets
IAS 38, “Intangible Assets” (“IAS 38”), requires that intangible assets be
amortized over their expected useful lives unless their lives are considered
to be indefinite. Factors such as typical product life cycles and legal or
similar limits on use are taken into account in the classification.
Internally generated intangible assets subject to amortization are related to
software and are recognized as development costs. Intangible assets
subject to amortization are generally amortized using the straight-line
method over their expected useful lives. The useful lives of customer
relationships and similar assets range between 2 and 50 years, and
between 3 and 50 years for concessions, industrial property rights, licenses
and similar rights, unless depreciation based on consumption reflects an
appropriate level of depletion. This latter category includes software in
particular. Useful lives and amortization methods are subject to regular
verification. Intangible assets subject to amortization are tested for
impairment whenever events or changes in circumstances indicate that
such assets may be impaired.
Intangible assets whose use has not yet started are not amortized. An
impairment test is carried out at least once a year as well as whenever
there are indications of impairment, either for the individual asset or at the
level of the cash-generating unit. The useful life of an intangible asset with
an indefinite life is tested annually to determine whether the indefinite life
assumption continues to be justified.
Both assets with definite and indefinite useful lives are impaired if the
recoverable amount–the higher of fair value less costs to sell and value in
usei–is lower than the carrying amount. If the reasons for the impairment
losses previously recognized under “Depreciation, amortization and
impairment charges” no longer apply, these assets are written up to a
maximum of the value that would have resulted if no impairment losses
had been recognized during the preceding periods, taking into account
scheduled amortization.
See Note 14 for additional information about goodwill and intangible
assets.
Research and Development Costs
Under IFRS, expenditure on research is expensed as incurred, while costs
incurred during the development phase of new products, services and
technologies are to be recognized as assets when the specific criteria for
recognition specified in IAS 38 are present. In the 2023 and 2024 fiscal
years, E.ON capitalized costs for internally generated software and other
technologies in this context.
Property, Plant and Equipment
Property, plant and equipment is initially measured at acquisition or
production cost, including decommissioning or restoration cost that must
be capitalized, and is depreciated over the expected useful lives of the
components, generally using the straight-line method, unless a different
method of depreciation is deemed more suitable in certain exceptional
cases. Useful lives are regularly tested for appropriateness and the
underlying assumptions and estimates are updated, for example, in view of
technical, economic or legal circumstances.
The useful lives of the most significant asset classes of material property,
plant and equipment are presented below:
Property, plant and equipment is tested for impairment whenever events
or changes in circumstances indicate that an asset may be impaired. In
such a case, property, plant and equipment is tested for impairment
according to the principles prescribed for intangible assets in IAS 36. If the
reasons for the impairment losses previously recognized under
“Depreciation, amortization and impairment charges” no longer exist, such
impairment losses are reversed and recognized in income. Such reversal
shall not cause the carrying amount to exceed the amount that would have
resulted had no impairment taken place during the preceding periods.
Subsequent costs arising, for example, from additional or replacement
capital expenditure are only recognized as part of the acquisition or
production cost of the asset, or else—if relevant—recognized as a separate
asset if it is probable that the Group will receive a future economic benefit
and the cost can be determined reliably.
Repair and maintenance costs that do not constitute significant
replacement capital expenditure are expensed as incurred.
Borrowing Costs
Borrowing costs that arise in connection with the acquisition, construction
or production of a qualifying asset from the time of acquisition or from the
beginning of construction or production until the conclusion of all material
work required to prepare the qualifying asset for its intended use or sale
are capitalized and subsequently amortized alongside the related asset. In
the case of a specific financing arrangement, the respective borrowing
costs incurred for that particular arrangement during the period are used.
For non-specific financing arrangements, a financing rate uniform within
Useful Lives of Property, Plant and Equipment
Buildings
5 to 60 years
Technical equipment, plant and machinery
2 to 80 years
Other equipment, fixtures, furniture and office equipment
2 to 30 years
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
144
the Group of 3.00 percent was applied for 2024 (2023: 2.66 percent).
Other borrowing costs are expensed.
Government Grants
The Group receives grants for assets and grants related to income.
Government investment subsidies do not reduce the acquisition and
production costs of the respective assets; they are instead reported on the
balance sheet as deferred income. They are recognized in income on a
straight-line basis over the associated asset’s expected useful life.
Grants related to income are also generally recognized as deferred income
on the balance sheet. The liability item is reversed over the period
necessary to match the corresponding income effects that are intended to
compensate for the government grants. Grants are recognized in the same
way as subsidized items.
Government grants are recognized at fair value if the Group satisfies the
necessary conditions for receipt of the grant and if it is highly probable that
the grant will be issued.
Leasing
Lease agreements are accounted for in accordance with IFRS 16, “Leases”
(“IFRS 16”). A lease is an agreement that conveys the right to use an
identified asset for a specified period in exchange for consideration. In
certain cases, agreements that are not concluded in the form of a rental or
lease agreement (e.g., physical power purchase agreements) are also
reviewed to determine whether they contain a lease in accordance with
IFRS 16. E.ON is party to some agreements in which it is the lessor and to
others in which it is the lessee.
E.ON as Lessee
Transactions in which E.ON acts as a lessee are accounted for on the basis
of the right-of-use model. The recognition exemption of IFRS 16.5 is used
for low-value leases and for agreements with a lease term of less than 12
months (short-term leases). Accordingly, there is no recognition of the
right-of-use asset and the lease liability. Instead, the payments are
recognized on a straight-line basis as an expense. In line with internal
management practice, intragroup leases are recognized as current
expenses in the segment reporting.
A lease liability is recognized in the amount of the present value of the
existing payment obligation. Where an arrangement provides for payments
for lease components and non-lease components, the payments are not
separated using the practical expedient under IFRS 16.15 (with the
exception of real estate leases); the lease liability is measured taking into
account the total amount of the payments. Present value is determined by
discounting with an incremental borrowing rate that is equivalent in terms
of risk and term if the implicit interest rate cannot be determined. The
liability is subsequently measured using the effective interest method. A
right-of-use asset corresponding with the lease liability is recognized in the
amount of the present value of the lease payments. The initial recognition
amount of the right-of-use asset is increased by the amount of the initial
direct costs, as well as expected costs for asset retirement obligations;
prepayments made are included and lease incentives received are deducted
from the initial recognition amount. A right-of-use asset is subsequently
measured at amortized cost. Depreciation is carried out on a straight-line
basis over the shorter of the lease term or the useful life of the identified
asset. An impairment test is carried out in accordance with IAS 36 if events
or changed circumstances indicate an impairment.
E.ON ensures its operational flexibility when concluding leasing
agreements through the use of extension and termination options. In
determining the lease term, E.ON considers all facts and circumstances
that provide an economic incentive to exercise existing options. The lease
term therefore also includes periods covered by extension options if it is
assumed with reasonable certainty that they will be exercised.
E.ON as Lessor
Lease transactions in which E.ON acts as lessor are classified as operating
or finance leases depending on the distribution of risks and rewards. If a
lease is classified as an operating lease, E.ON recognizes the identified
asset and recognizes the lease payments as other operating income on a
straight-line basis over the lease term. For finance leases, the identified
asset is derecognized and a receivable is recognized in the amount of the
net investment value. Payments made by the lessee are treated as a
reduction of the lease receivable or interest income, which is recognized
over the term of the lease using the effective interest method. Interest
income from customer contracts in the core business is presented
separately under revenues. Subleases are classified based on the right-of-
use asset under the head lease.
Financial Instruments
Non-Derivative Financial Instruments
Non-derivative financial instruments are measured in accordance with
IFRS 9, “Financial Instruments” (“IFRS 9”). They are recognized at fair
value, including transaction costs, on the settlement date when acquired,
provided they are not recognized at fair value through profit and loss.
Financial assets are classified as financial assets measured at amortized
cost (AmC), financial assets measured at fair value through other
comprehensive income (FVOCI), and financial assets measured at fair value
through profit and loss (FVPL) based on the business model and the
characteristics of the cash flows.
If a financial asset is held for the purpose of collecting contractual cash
flows and the cash flows of the financial asset represent exclusively
interest and principal payments, then the financial asset is measured at
amortized cost (AmC).
A financial asset is measured at fair value through other comprehensive
income (FVOCI) if it is used both to collect contractual cash flows and for
sales purposes and the cash flows of the financial asset consist exclusively
of interest and principal payments.
Unrealized gains and losses from financial assets measured at fair value
through other comprehensive income (FVOCI), net of related deferred
taxes, are reported as a component of equity (other comprehensive
income) until realized. Realized gains and losses are determined by
analyzing each transaction individually.
Debt instruments that do not exclusively serve to collect contractual cash
flows or to both generate contractual cash flows and sales revenue, or
whose cash flows do not exclusively consist of interest and principal
payments are measured at fair value through profit and loss (FVPL). For
equity instruments that are not held for trading purposes, E.ON does not
exercise the FVOCI option.
Impairments of financial assets are both recognized for losses already
incurred and for expected future credit defaults. The amount of the
impairment loss calculated in the determination of expected credit losses is
recognized on the income statement.
The expected future credit loss is calculated by multiplying the probability
of default by the carrying amount of the financial asset (exposure at
default) and the expected loss ratio (loss given default). For information on
the treatment of impairments under IFRS 9, please see Note 31.
Non-derivative financial liabilities (including trade payables) within the
scope of IFRS 9 are measured at amortized cost, using the effective
interest method. Initial measurement takes place at fair value, with
transaction costs included in the measurement. In the subsequent
measurement, the residual carrying amount is adjusted by the amortization
and accretion of any premium or discount remaining until maturity. The
premium or discount is recognized in financial results over its term.
Derivative Financial Instruments and Hedging
Derivative financial instruments and separated embedded derivatives are
measured at fair value as of the trading date at initial recognition. Under
IFRS 9, they are classified as at fair value through profit and loss (FVPL) as
long as they are not a component of a hedge accounting relationship. Gains
and losses from changes in fair value are immediately recognized in net
income.
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E.ON Integrated Annual Report 2024
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The instruments primarily used are foreign currency forwards and cross-
currency interest rate swaps, as well as interest rate swaps. In
commodities, the instruments used primarily include physically and
financially settled forwards and options related to electricity and gas.
As part of fair value measurement in accordance with IFRS 13, the
counterparty risk is also taken into account for derivative financial
instruments. E.ON determines this risk based on a portfolio valuation in a
bilateral approach for both own credit risk (debt value adjustment) and the
credit risk of the corresponding counterparty (credit value adjustment). The
counterparty risks thus determined are allocated to the individual financial
instruments by applying the relative fair value method on a net basis.
E.ON has designated some of these derivatives as part of a hedging
relationship. IFRS 9 sets requirements for the admissibility of hedging
instruments and the underlyings, the formal designation and
documentation of hedging relationships, the hedging strategy, as well as
fulfilling requirements of effectiveness in order to qualify for hedge
accounting. The designated hedged items and hedging instruments are
subject to the same risk. This economic relationship ensures that the
amounts of the hedged items and hedging instruments are offset against
each other and that the hedging relationships are therefore effective. The
hedge ratio of the hedges is 1:1. Ineffectiveness arises only if the
measurement parameters of the hedged item and the hedging instrument
differ from one another or in the case of subsequent designation of the
hedging instrument. All components of derivative gains and losses from
the measurement of hedge ineffectiveness are taken into consideration
during recognition.
For qualifying fair value hedges, the change in the fair value of the
derivative and the change in the fair value of the hedged item that is due to
the hedged risk(s) are recognized in income.
If a derivative instrument qualifies as a cash flow hedge under IFRS 9, the
effective portion of the hedging instrument’s change in fair value is
recognized in equity (as a component of other comprehensive income. In
accordance with IFRS 9, the currency basis spread (hedging costs) will be
separated from the hedging instrument and reported separately as an
excluded component in accumulated other comprehensive income in the
reserve for hedging costs as a component of equity.
The hedging result is reclassified into income during the period in which the
cash flows of the hedged asset are recognized in income. The result is
recognized immediately in income if it becomes probable that the hedged
underlying transaction will no longer occur. For hedging instruments used
to establish cash flow hedges, the change in fair value of the ineffective
portion is recognized immediately in the income statement to the extent
required.
To hedge the foreign currency risk arising from the Company’s net
investment in foreign operations, derivative as well as non-derivative
financial instruments are used. Gains or losses due to changes in fair value
and from foreign currency translation are recognized within equity, as a
component of other comprehensive income, under currency translation
adjustments.
E.ON currently uses hedges in the framework of cash flow hedges and
hedges of a net investment.
Changes in fair value of derivative instruments that are recognized in
income are presented as other operating income or expenses. Gains and
losses from interest-rate derivatives are included in interest income.
Unrealized gains and losses resulting from the initial measurement of
derivative financial instruments at the inception of the contract are not
recognized in income. They are instead deferred and recognized in income
systematically over the term of the derivative. An exception to the accrual
principle applies if unrealized gains and losses from the initial measurement
are verified by quoted market prices, observable prices of other current
market transactions or other observable data supporting the valuation
technique. In this case the gains and losses are recognized in income.
E.ON holds portfolios of sales and procurement contracts for electricity
and gas supplies with various customer and supplier groups (commodity
futures). Contracts (in particular sales and procurement contracts for
electricity and gas) that are entered into for purposes of receiving or
delivering non-financial items in accordance with E.ON’s anticipated
procurement, sale or use requirements, and held as such, are generally
classified as own-use contracts.
They are not accounted for as derivative financial instruments at fair value
through profit and loss (FVPL) in accordance with IFRS 9, but as pending
transactions subject to the rules of IAS 37. Contracts that provide for net
settlement and resales of the quantities to be delivered at a future date
generally cannot, as a rule, be classified as own-use contracts. Based on
forward-looking forecasts of delivery quantities specified by customer
structure and portfolio management, contracts with physical settlement
upon conclusion are recognized as derivatives for which settlement cannot
be ensured within the scope of ordinary delivery. This “safety buffer” is
reviewed on a regular basis and adjusted if necessary.
Embedded derivatives in own-use contracts must be separated from the
host contract and accounted for as derivatives in accordance with IFRS 9 if
the economic characteristics and risks of these derivatives are not closely
related to those of the host contract. The contract is assessed upon
conclusion to determine whether a derivative is required to be separated. A
reassessment must be carried out if there is a significant change in the
terms of the contract or in the context of business combinations.
Agreements to buy or sell non-financial items that are not classified as
own-use contracts under IFRS 9 and that are required to be accounted for
as derivatives must be recognized in the balance sheet at their fair value
until they are realized. At the time of physical settlement (delivery or feed-
in) of such energy delivery contracts, the electricity or gas volumes
delivered are measured at the market price prevailing at this time. The
difference between the contract price and the market price is recognized in
other operating income. In exceptional cases, commodity derivatives are
designated as hedging instruments of a cash flow hedge in accordance
with IFRS 9, and the effective part of the value change is recognized in
equity as a component of other comprehensive income.
IFRS 7, “Financial Instruments: Disclosures” (“IFRS 7”), and IFRS 13 both
require comprehensive quantitative and qualitative disclosures about the
extent of risks arising from financial instruments. Additional information on
financial instruments is provided in Notes 30 and 31.
Non-derivative and derivative financial instruments are netted on the
balance sheet if under IAS 32 E.ON has both an unconditional right—even
in the event of the counterparty’s insolvency—and the intention to settle
offsetting positions simultaneously and/or on a net basis.
Inventories
Inventories are measured at the lower of acquisition or production cost and
net realizable value. The cost of raw materials, finished products and goods
purchased for resale is determined based on the average cost method. In
addition to production materials and wages, production costs include
material and production overheads based on normal capacity. The costs of
general administration are not capitalized. Inventory risks resulting from
excess and obsolescence are considered by using appropriate valuation
allowances, whereby inventories are written down to net realizable value.
Emission Rights and Similar Certificates
Emission rights and similar certificates held under national and
international emissions trading systems for the settlement of obligations
are capitalized at cost at the date of acquisition and reported under current
assets. Subsequent measurement is at amortized cost under IAS 38.
The obligation to submit emission rights and similar certificates to the
relevant authorities is recognized as a liability as of the balance sheet date.
Measurement is based on the best estimate of the future settlement
amount.
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E.ON Integrated Annual Report 2024
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Receivables, Contract Assets or Liabilities and Other Assets
A receivable is recognized under IFRS 15 when the goods or services are
delivered, provided that the right to consideration is unconditional, i.e., is
only related to the passage of time. However, if the right to receive the
consideration is contingent upon conditions other than the passage of time,
a contract asset is recognized. A contract liability under IFRS 15 is
recognized when consideration has been received for an existing IFRS 15
contract and the right to receive the goods or services still exists in full or in
part. The contractual liability is only reversed with an effect on revenue
when E.ON has performed the corresponding service. An asset is
recognized under other assets under IFRS 15 if the cost of obtaining the
contract is expected to be recovered and the amortization period is longer
than one year. Other assets are amortized over the estimated term of the
contract depending on how the goods or services to which the costs relate
are transferred to the customer. If the estimated term of the contract is
less than one year, the costs are immediately recognized as an expense on
the income statement. Trade receivables without a significant financial
component are measured upon initial recognition at their transaction price.
Valuation allowances, included in the reported net carrying amount, are
provided for identifiable individual risks. If the loss of a certain part of the
receivables is probable, valuation allowances are provided to cover the
expected loss. Impairments are also recognized for expected future credit
losses.
Liquid Funds
Liquid funds include checks, cash on hand, bank balances and current
securities.
Liquid funds with an original maturity of more than three months are
recognized under securities and fixed-term deposits provided that their
maturities are not more than 12 months and therefore are recognized
under non-current financial receivables and other financial assets.
Liquid funds with an original maturity of less than three months are
considered to be cash and cash equivalents in accordance with IAS 7. This
also applies if they are merely contractually restricted, in which case the
funds can technically be disposed of at any time at E.ON’s discretion.
However, if, as a result of a restriction, liquid funds cannot technically be
disposed of at any time at E.ON’s discretion, they are reported separately
as restricted liquid funds.
Assets Held for Sale and Liabilities Associated with Assets Held
for Sale and Discontinued Operations
Non-current assets and any corresponding liabilities held for sale are
recognized separately from other assets and liabilities in the balance sheet
in the line items “Assets held for sale” and “Liabilities associated with
assets held for sale” if they can be disposed of in their current condition and
if there is sufficient probability of their disposal actually taking place. The
reclassification to the separate balance sheet items is shown in the fixed
asset movement schedule under Disposals.
Discontinued operations are components of an entity that are either held
for sale or have already been sold and can be clearly distinguished from
other corporate operations, both operationally and for financial reporting
purposes. Additionally, the component of the entity classified as a
discontinued operation must represent a major business line or a specific
material geographic business segment of the Group or a subsidiary
acquired exclusively for resale.
Non-current assets that are held for sale either individually or collectively
as part of a disposal group, or that belong to a discontinued operation, are
no longer depreciated. They are instead accounted for at the lower of the
carrying amount and the fair value less any remaining costs to sell. If this
value is less than the carrying amount, an impairment loss is recognized in
other operating expenses.
The income and losses resulting from the measurement of components
held for sale as well as the gains and losses arising from the disposal of
discontinued operations, are reported separately on the face of the income
statement under income/loss from discontinued operations, net, as is the
income from the ordinary operating activities of these divisions. Prior-year
income statement figures are adjusted accordingly. The relevant assets and
liabilities are reported in a separate line on the balance sheet. The cash
flows of discontinued operations are reported separately in the cash flow
statement, with prior-year figures adjusted accordingly. However, there is
no reclassification of prior-year balance sheet line items attributable to
discontinued operations.
Equity Instruments
E.ON has entered into purchase commitments to holders of non-
controlling interests in subsidiaries. By means of these agreements, the
non-controlling shareholders have the right to require E.ON to purchase
their shares on specified conditions. None of the contractual obligations
has led to the transfer of substantially all of the risk and rewards to E.ON at
the time of entering into the contract. Under the anticipated acquisition
method, however, the right of tender is accounted for as if it had already
been exercised. Accordingly, the minority interests are derecognized—
irrespective of the probability of the option being exercised—and at the
same time a liability is recognized in the amount of the present value of the
repurchase amount in accordance with IAS 32, “Financial Instruments:
Presentation” (“IAS 32”). The difference between this measurement and
the carrying amount of the minority shareholders’ equity to be
derecognized is recognized in equity of E.ON SE shareholders. The
accretion of the liability is recognized as interest expense. If a purchase
commitment expires unexercised, the liability reverts to non-controlling
interests. Any remaining difference is then recognized directly in equity in
retained earnings.
Where shareholders of entities own statutory, non-excludable rights of
termination (as in the case of German partnerships, for example), such
termination rights require the reclassification of non-controlling interests
from equity into liabilities under IAS 32. The liability is recognized at the
present value of the expected settlement amount irrespective of the
probability of termination. Changes in the value of the liability are reported
within other operating income. Accretion of the share of the results of the
non-controlling shareholders’ share in net income is recognized in Net
interest income/expense. In the event that non-controlling shareholders
are entitled to a guaranteed dividend, this entitlement is recognized as a
liability through reclassification from non-controlling interests in equity.
If E.ON SE or a Group company buys treasury shares of E.ON SE, the value
of the consideration paid, including directly attributable additional costs
(net after income taxes), is deducted from E.ON SE’s equity until the shares
are retired, distributed or resold. If such treasury shares are subsequently
distributed or sold, the consideration received, net of acquisition costs, any
directly attributable additional transaction costs and associated income
taxes, is recognized in additional paid-in capital.
Share-Based Payment
Share-based payment plans issued in the E.ON Group are accounted for in
accordance with IFRS 2, “Share-Based Payment” (“IFRS 2”).
In fiscal years 2017 to 2024, virtual shares were granted to members of
the Management Board of E.ON SE and certain E.ON Group executives
under the new E.ON Performance Plan. See the Compensation Report for
more details on the structure of the plan.
The E.ON Performance Plan represents commitments of the Company
which provide for cash compensation based on the share price
performance at the end of the term. The compensation expense is
measured taking into account the fair value of the virtual shares granted
and recognized in personnel expense pro rata over the vesting period.
In 2024, as in 2023, employees of E.ON SE and participating subsidiaries
once again had the opportunity to purchase E.ON shares at favorable
conditions under the employee stock purchase program. The program
includes a share-based payment settled in equity instruments (shares of
E.ON SE) as consideration for services rendered or work performed. The
corresponding compensation under IFRS 2 was recognized in personnel
expense and the offsetting entry was made in equity.
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
147
Provisions for Pensions and Similar Obligations
Measurement of defined benefit obligations in accordance with IAS 19,
“Employee Benefits,” is based on actuarial computations using the
projected unit credit method, with actuarial valuations performed at year-
end. The valuation encompasses both pension obligations and pension
entitlements that are known on the reporting date and economic trend
assumptions such as assumptions on wage and salary growth rates and
pension increase rates, among others, that are made in order to reflect
realistic expectations, as well as variables specific to reporting dates such
as discount rates, for example.
Included in gains and losses from the remeasurements of the net defined
benefit liability or asset are actuarial gains and losses that may arise
especially from differences between estimated and actual variations in
underlying assumptions about demographic and financial variables.
Additionally included is the difference between the actual return on plan
assets and the expected interest income on plan assets included in the net
interest result. Remeasurement effects are recognized in full in the period
in which they occur and are not reported within the Consolidated
Statement of Income, but are instead recognized within the Consolidated
Statement of Recognized Income and Expenses as part of equity.
The employer service cost representing the additional benefits that
employees earned under the benefit plan during the fiscal year is reported
under personnel costs; the net interest on the net liability or asset from
defined benefit pension plans determined based on the discount rate
applicable at the start of the fiscal year is reported under financial results.
Past service cost, as well as gains and losses from settlements, are fully
recognized in the income statement in the period in which the underlying
plan amendment, curtailment or settlement takes place. They are reported
under personnel costs.
The amount reported on the balance sheet represents the present value of
the defined benefit obligations reduced by the fair value of plan assets. If a
net asset position arises from this calculation, the amount is limited to the
present value of available refunds and the reduction in future contributions
and to the benefit from prepayments of minimum funding requirements.
Such an asset position is recognized as an operating receivable.
Payments for defined contribution pension plans are expensed when due
and reported under personnel costs. Contributions to state pension plans
are treated like payments for defined contribution pension plans to the
extent that the obligations under these pension plans generally correspond
to those under defined contribution pension plans.
Provisions for Asset Retirement Obligations and Other
Miscellaneous Provisions
In accordance with IAS 37, “Provisions, Contingent Liabilities and
Contingent Assets” (“IAS 37”), provisions are recognized when E.ON has a
legal or constructive present obligation towards third parties as a result of
a past event, it is probable that E.ON will be required to settle the
obligation, and a reliable estimate can be made of the amount of the
obligation. The provision is recognized at the expected settlement amount.
Long-term obligations are reported as liabilities at the present value of
their expected settlement amounts if the interest rate effect (the difference
between present value and repayment amount) resulting from discounting
is material; future cost increases that are foreseeable and likely to occur on
the balance sheet date at year-end must also be included in the
measurement. Long-term obligations are generally discounted at the
market interest rate applicable as of the respective balance sheet date,
provided that it is not negative. The accretion amounts and the effects of
changes in interest rates are generally presented as part of financial
results. A reimbursement related to the provision that is virtually certain to
be collected is capitalized as a separate asset. No offsetting within
provisions is permitted. Advance payments remitted are deducted from the
provisions.
Obligations arising from the decommissioning or dismantling of property,
plant and equipment are recognized during the period of their occurrence
at their discounted settlement amounts, provided that the obligation can
be reliably estimated, whereby no negative discount rates are applied. The
carrying amounts of the respective property, plant and equipment are
increased by the same amounts. In subsequent periods, capitalized asset
retirement costs are amortized over the expected remaining useful lives of
the assets, and the provision is accreted to its present value on an annual
basis. Advance payments remitted are deducted from the provisions.
Changes in estimates arise in particular from deviations from original cost
estimates, from changes to the maturity or the scope of the relevant
obligation, and also as a result of the regular adjustment of the discount
rate to current market interest rates. The adjustment of provisions for the
decommissioning and restoration of property, plant and equipment for
changes to estimates is generally recognized by way of a corresponding
adjustment to these assets, with no effect on income. As the property,
plant and equipment concerned have, however, frequently already been
fully depreciated, changes to estimates are primarily recognized within the
income statement.
The estimates for nuclear decommissioning provisions are derived from
studies, cost estimates, legally binding civil agreements and legal
information. A material element in the estimates are the real interest rates
applied (the applied discount rate, less the cost increase rate).
If onerous contracts exist in which the unavoidable costs of meeting a
contractual obligation exceed the economic benefits expected to be
received under the contract, provisions are established for losses from
pending transactions. Such provisions are recognized at the lower of the
excess obligation upon performance under the contract and any potential
penalties or compensation arising in the event of non-performance.
Obligations under an open contractual relationship are determined from a
sales market perspective, in part on the basis of contract portfolios.
Provisions for pending sales transactions must also be recognized if these
transactions are subject to the own-use exemption under IFRS 9 and if
they are partially offset by transactions that are accounted for as derivative
financial instruments measured at current market prices. As a result,
provisions under IAS 37 are recognized for transactions actually subject to
the own-use exemption, for the purpose of which the intrinsic values of the
derivatives accounted for under IFRS 9 held in the procurement portfolio
are taken into consideration in the calculation of the imputed performance
costs. The book structure adopted under IFRS 9 therefore affects the
accounting treatment of the corresponding provisions.
Contingent liabilities are possible obligations toward third parties arising
from past events that are not wholly within the control of the entity, or else
present obligations toward third parties arising from past events in which
an outflow of resources embodying economic benefits is not probable or
where the amount of the obligation cannot be measured with sufficient
reliability. Contingent liabilities are not recognized on the balance sheet.
A full disclosure of information is not provided for certain contingent
liabilities, contingent receivables and provisions in connection with pending
litigation if such disclosure could have a significant influence on further
proceedings.
Provisions for restructuring costs are recognized at the present value of the
future outflows of resources. Provisions are recognized once a detailed
restructuring plan has been decided on by management and whose
implementation has either already begun or which have been publicly
announced or communicated to the employees or their representatives.
Only those expenses that are directly attributable to the restructuring
measures are used in measuring the amount of the provision. Expenses
associated with the future operation are not taken into consideration.
Income Taxes
Under IAS 12, “Income Taxes” (“IAS 12”), deferred taxes are recognized on
temporary differences arising between the carrying amounts of assets and
liabilities on the balance sheet and their tax bases (balance sheet liability
method). Deferred taxes are recognized for temporary differences that will
result in taxable or deductible amounts when taxable income is calculated
for future periods, unless those differences are the result of the initial
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
148
recognition of an asset or liability in a transaction other than a business
combination that, at the time of the transaction, affects neither accounting
nor taxable profit/loss and does not generate any temporary differences in
the same amount that are subject to tax or to deduction (initial differences).
Uncertain tax positions are recognized at their most likely value or the
expected value. IAS 12 further requires that deferred tax assets be
recognized for unused tax loss carryforwards and unused tax credits.
Deferred tax assets are recognized to the extent that it is probable that
taxable profit will be available against which the deductible temporary
differences and unused tax losses can be utilized. Each of the corporate
entities is assessed individually with regard to the probability of a positive
tax result in future years. The planning horizon is basically three to five
years in this context. Any existing history of losses is incorporated in this
assessment. For those tax assets to which these assumptions do not apply,
the value of the deferred tax assets is reduced. Deferred taxes in
connection with the global minimum tax (“Pillar II”) are not recognized.
Deferred tax liabilities caused by temporary differences associated with
investments in affiliated and associated companies are recognized unless
the timing of the reversal of such temporary differences can be controlled
within the Group and it is probable that, owing to this control, the
differences will in fact not be reversed in the foreseeable future.
Deferred tax assets and liabilities are measured using the enacted or
substantively enacted tax rates expected to be applicable for taxable
income in the years in which temporary differences are expected to be
recovered or settled. The effect on deferred tax assets and liabilities of
changes in tax rates and tax law is recognized in net income unless the
change affects deferred taxes that had previously been recognized directly
in equity. The change is generally recognized in the period in which the
material legislative process is completed. Income taxes for transaction
costs of an equity transaction are recognized directly in equity.
Income tax items are regularly assessed, in particular against the backdrop
of numerous changes in tax laws, tax regulations, legal decisions and
ongoing tax audits. E.ON is responding to this circumstance, in particular
through the application of IFRIC 23, by continuously identifying and
assessing the tax environment and the resulting effects. The most current
information is then incorporated into the estimate parameters necessary
for measuring the tax provisions. Accordingly, related potential interest
rate effects are also assessed, measured and reported separately.
Consolidated Statement of Cash Flows
In accordance with IAS 7, “Statement of Cash Flows,” the Consolidated
Statement of Cash Flows are classified in cash flows from operating,
investing and financing activities.
Segment Information
In accordance with the so-called management approach required by IFRS
8, “Operating Segments,” the internal reporting organization used by
management for making decisions on operating matters is used to identify
the Company’s reportable segments. The internal performance measure
used as the segment result is EBITDA adjusted to exclude certain non-
operating effects (see Note 34). Transactions between the reportable
segments are recorded at arm’s length transfer prices.
Structure of the Consolidated Balance Sheets and Statement of
Income
In accordance with IAS 1, “Presentation of Financial Statements,” the
Consolidated Balance Sheets have been prepared using a classified balance
sheet structure. Assets that will be realized within 12 months of the
reporting date, as well as liabilities that are due to be settled within one
year of the reporting date are generally classified as current.
The Consolidated Statement of Income is classified using the nature of
expense method, which is also applied for internal purposes.
Critical Accounting Estimates and Assumptions; Critical
Judgments in the Application of Accounting Policies
The preparation of the Consolidated Financial Statements requires
management to make estimates and assumptions that may both influence
the application of accounting principles within the Group and affect the
measurement and presentation of reported figures. Actual amounts may
differ from these estimates. Estimates are based on past experience and on
current knowledge obtained on the transactions to be reported. The
estimates and underlying assumptions are reviewed on an ongoing basis
and are adjusted as necessary in the periods in which they were
recognized.
Estimates are particularly necessary for the measurement of the value of
property, plant and equipment and of intangible assets, specifically in
connection with purchase price allocations and determining the useful life,
the recognition and measurement of deferred tax assets (especially with
regard to the future availability of taxable profits against which the
deductible temporary differences and tax loss carryforwards can be
applied), the accounting treatment of provisions for pensions and other
provisions (in particular provisions for the decommissioning of nuclear
power plants and provisions for onerous contracts from pending
transactions involving the sale of electricity and gas), for impairment
testing in accordance with IAS 36, as well as the determination of the fair
value of certain financial instruments, as well as for the application of IFRS
15, and here in particular for the estimation of the value of electricity and
gas units supplied, including the estimated values for units between the
last settlement and the end of the period. The same applies to the
estimation of outstanding performance obligations. This estimation is
performed on the basis of medium-term planning data. In a second step,
this data is adjusted for expected new contracts and the renewal of
existing contracts in the coming years. Estimates are also factored in when
applying IFRS 16, namely in connection with the determination of lease
terms and the calculation of the discount rate, and in part when applying
IFRS 9 in connection with the determination of expected future credit
losses.
The application of accounting policies requires judgments to be made that
may affect the amounts recognized in the financial statements. Judgments
are relevant, for example, when assessing whether an item is to be
classified in accordance with IFRS 5. Here, management assesses whether
a disposal is considered highly probable. Further judgments may be
necessary in assessing whether E.ON controls, jointly controls with other
investors, or can significantly influence an entity. Specifically, management
assesses here what the significant activities of the Company are, i.e., which
activities have a material impact on the returns of the investee. The list of
shareholdings (see Note 12) provides information on the form of inclusion
in the consolidated financial statements of certain investees whose share
of voting rights indicates a different form of inclusion. The impairment
tests to be conducted in accordance with IAS 36 are also based on various
assumptions according to the discretionary judgment of the management.
The assumptions applied for the impairment tests conducted in fiscal year
2024 are described in detail in Note 14. Critical judgment is also required in
the recognition of risks arising from claims asserted by customers for the
restitution of amounts collected through price adjustment measures
(provisions in connection with price adjustments). Discretionary judgment
is required in estimating the financial impacts of litigation, particularly the
determination of whether assets or liabilities should be recognized and
whether contingent assets or liabilities should be disclosed (see Note 28).
Estimates and judgments continue to be subject to increased uncertainty,
in particular due to the significant volume and price volatilities on the
energy markets (and due to the continuing war in Ukraine). The actual
amounts may differ from the estimates and judgments made. Such
changes may have a material impact on E.ON’s net assets, financial
position and results of operations. When the estimates and judgments
were updated, all available information on expected economic
developments and country-specific government measures was taken into
account on the reporting date. It is still difficult to predict the duration and
the extent of the impact on assets, liabilities, earnings and cash flows of the
war in Ukraine.
The underlying principles used for estimates and judgments in the named
topics and in additional relevant topics are outlined in the respective
sections.
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
149
(2) New Standards, Interpretations and Amendments
Standards, Interpretations and Amendments Applicable for
the First Time in Fiscal Year 2024
The EU has transposed these amendments into European law. The
amendments will be applied for fiscal years beginning on or after
January 1, 2024. The amendments have no material impact on E.ON’s
Consolidated Financial Statements.
IASB and IFRS IC Pronouncements
Explanation
To be applied by E.ON
from
Expected impact on the presentation of E.ON's net assets,
financial position and results of operations
Amendments to IFRS 16—Lease Liability in a Sale and Leaseback
Clarification that the seller-lessee determines the (modified) lease
payments in the subsequent measurement of the lease liability in a way
that prevents the recognition of a gain or loss for the right-of-use
retained.
01/01/2024
No material impact.
Amendments to IAS 1—Classification of Liabilities as Current or Non-
Current
Amendments to IAS 1—Classification of Liabilities as Current or Non-
Current—Deferral of Effective Date
Amendments to IAS 1 —Non-Current Liabilities with Covenants
Clarification that the classification of liabilities as current or noncurrent
is based on the existing rights of the entity at the reporting date.
Clarification of how conditions with which an entity must comply within
12 months after the reporting period affect the classification of a
liability.
01/01/2024
No material impact.
Amendments to IAS 7 and IFRS 7—Supplier Finance Arrangements
Additional disclosure requirements for companies to
provide qualitative and quantitative information about supplier
finance arrangements.
01/01/2024
No impact.
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
150
Standards, Interpretations and Amendments Issued But
Not Yet Applicable
The IASB and the IFRS IC have issued the following additional standards
and interpretations. E.ON does not apply these rules because their
application is not yet mandatory. The table below shows whether these
amendments are expected to have a material impact on E.ON’s
Consolidated Financial Statements:
IASB and IFRS IC Pronouncements
Explanation
Transposed
into EU law
To be applied by
E.ON from
Expected impact on the presentation of E.ON's net
assets, financial position and results of operations
Amendments to IAS 21—Lack of Exchangeability
Specification of when a currency is exchangeable and how to
determine the exchange rate when it is not.
No
01.01.2025
No impact.
Amendments to IFRS 7 and 9—Classification and
Measurement of Financial Instruments
Amendment regarding derecognition of a financial liability settled
through electronic transfer, classification of financial assets, and
further disclosures.
No
01/01/2026*
No material impact.
Annual Improvements to IFRS
The IASB issued Annual Improvements to IFRS Accounting
Standards (Volume 11) on July 18, 2024.
No
01/01/2026*
No material impact.
Amendments to IFRS 9 and IFRS 7—Contracts Referencing
Nature-Dependent Electricity
Contracts referencing nature-dependent electricity help companies
access electricity from sources such as wind or solar power. These
contracts are often structured as Power Purchase Agreements. In
order to provide better representation of these contracts in the
financial statements of companies, the IASB has made the
following amendments:
—Clarification on the application of the own use exemption to these
contracts;
—Amendment of the hedge accounting for requirements to permit
an entity to use such contracts as hedging instruments if certain
conditions are met;
—Introduction of additional disclosure requirements.
No
01/01/2026*
No material impact.
IFRS 19—Subsidiaries without Public Accountability:
Disclosures
IFRS 19 establishes reduced disclosure requirements that an
eligible entity may apply instead of the disclosure requirements in
other IFRS financial reporting standards.
No
01/01/2027*
No impact.
IFRS 18—Presentation and Disclosures in Financial
Statements
IFRS 18 contains requirements for the presentation and disclosure
of information in IFRS financial statements. IFRS 18 will replace
IAS 1 "Presentation of Financial Statements." The key changes
introduced by IFRS 18 include:
—In the statement of profit or loss: new requirements for the
classification of income and expenses into categories and the
disclosure of two newly defined subtotals;
—In the notes: disclosure of management defined performance
measures;
—In primary statements and note disclosures: additional
requirements for aggregation/disaggregation.
No
01/01/2027*
The initial application of IFRS 18 is expected to have significant
impacts on the presentation of financial statements, the specific
extent of which is currently being analyzed.
* If not yet endorsed by the EU the date of first-time adoption scheduled by the IASB is assumed to apply.
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
151
(3) Scope of Consolidation
The number of consolidated companies changed as follows in the 2024
fiscal year:
Scope of Consolidation
Domestic
Foreign
Total
Consolidated companies
as of January 1, 2023
166
143
309
Additions
5
4
9
Disposals/Mergers
7
18
25
Consolidated companies
as of December 31, 2023
164
129
293
Additions
6
14
20
Disposals/Mergers
6
6
12
Consolidated companies
as of December 31, 2024
164
137
301
In 2024, a total of 53 domestic and 8 foreign associated companies were
consolidated under the equity method (2023: 53 domestic companies and
10 foreign companies). One domestic company reported as joint operations
was presented pro rata on the Consolidated Financial Statements (2023:
one domestic company).
(4) Material Acquisitions, Disposals and Disposal Groups in
2024
Termination of Operating Concession Wastewater
Treatment Plant in Croatia
A concession agreement for the operation of a wastewater treatment plant
existed between Zagrebacke otpadne vode d.o.o., a company consolidated
at equity in the E.ON Group, and the City of Zagreb. By majority resolution
of the City Assembly on January 25, 2024, the City of Zagreb exercised its
contractually agreed right to unilaterally terminate this concession. The
six-month period of notice expired at the beginning of August and the
operating lead was transferred to the City of Zagreb. The negotiations
regarding the amount of the compensation payment are still ongoing. E.ON
obtained an earnings contribution in a single-digit million range for the
fiscal year 2024. A material disposal result is not expected.
Disposal of a Joint Venture in the Netherlands
Essent Energy Next Solutions B.V. (Essent) held a 49 percent stake in a
joint venture, Kemkens Groep B.V., which has been consolidated at equity.
The joint venture partner had a contractually agreed call option entitling
them to acquire the 49 percent stake. In June 2024, Essent was notified in
writing by the joint venture partner about the exercise of this option. The
closing of the transaction was expected in the second half of 2024. As a
result, the criteria of IFRS 5 for reporting as “held for sale” were met for the
first time as of June 30, 2024. Therefore, the investment from the Energy
Retail Netherlands segment has been reported as an “asset held for sale” in
the balance sheet in the second and third quarter of 2024. The transaction
was finally closed as of October 8, 2024, with a positive disposal gain in a
lower double-digit million range.
Agreement Reached for Sale of Energy Retail Business in
Romania
E.ON signed an agreement on December 16, 2024, to sell its 68 percent
shareholding in E.ON Energie România S.A. and its 98 percent shareholding
in E.ON Asist Complet S.A. (both reported in the Energy Retail Other
operating segment) to MVM Group. The transaction is subject to necessary
approvals and is expected to be completed in the first half of 2025. Until
closing of the transaction, the business will be classified as a disposal
group under IFRS 5.
Assets totaling €684 million and liabilities totaling €400 million were
reclassified to the disposal group, and goodwill of €12 million was
allocated. The assets primarily consist of current assets of €651 million,
and of non-current assets of €17 million and deferred tax assets
(€16 million). The total liabilities consist of liabilities of €386 million,
provisions of €10 million and deferred tax liabilities of €4 million. The
accumulated expense recognized in other comprehensive income relating
to the disposal group amounts to €48 million. As of December 31, 2024,
no impairment loss for any write-down of the disposal group to fair value
less costs to sell has been recognized.
Deconsolidation results are generally allocated to other operating income.
(5) Revenue
At €80.1 billion, revenues in 2024 were significantly lower (roughly -
€13.6 billion) than in the previous year.
Revenues in the Energy Networks business division increased compared to
the prior year. In addition to the growing regulated asset base, which had a
positive impact on revenue across all regions, the discontinuation of
government subsidies for transmission system operators in Germany
during the current reporting period led to a further increase in network
tariffs. In contrast, and more than offsetting this development, there was a
significant reduction in the Energy Retail business division due to price
developments on the commodity markets. The downward price trend that
began in autumn 2023 reversed in the second quarter of 2024.
Nevertheless, prices in 2024 remained well below 2023 levels, leading to
lower revenue compared with the prior year. In addition to price trends,
lower sales volumes due to weather conditions also contributed to the
decline in revenue. Sales also declined owing to a reduction in sales
volume that was due in part to our ongoing focus on residential and smaller
business customers as well as medium-sized business customers.
Furthermore, revenue from sales volumes contracted on a forward basis
and accounted for as derivatives under IFRS 9 must be recognized at
market prices at the time of physical delivery. The opposing effects of the
market valuation of commodity derivatives are recorded under other
operating income.
The decline in revenues in the Energy Infrastructure Solutions business
division resulted particularly from the lower sales prices in the heating
business in Germany determined by the passing on of lower procurement
costs. Due to its business model, finance leases are an integral part of the
core business in the Energy Infrastructure Solutions segment. The resulting
interest income of €17.5 million was reported as revenue for the first time
in the 2024 financial year (2023: €0 million).
Revenue realized in the current reporting period and resulting from
performance obligations that had already been fulfilled in whole or in part
in previous reporting periods amounted to €0.4 billion (2023: €0.8 billion).
As of December 31, 2024, the total amount of performance obligations
already contracted but still outstanding (excluding expected contract
extensions and expected new contracts) amounted to €34.7 billion
(December 31, 2023: €30.8 billion). We expect to fulfil outstanding
performance obligations of €13.1 billion in 2025 and 2026. Additional
performance obligations amounting to €21.6 billion are expected to be
fulfilled from 2027 onwards. In the E.ON Group, revenues are mainly
realized over time. Revenues that were not recognized under IFRS 15 but
under other accounting standards totaled €0.2 billion in the 2024 fiscal
year (2023: €5.4 billion). Of this, €0.1 billion was attributable to income-
related government grants from the public sector (2023: €5.2 billion).
Revenues are broken down in detail into intragroup and external revenues
in the segment information (Note 34). They are also broken down into key
regions and products. The overview also shows the effect of revenues on
operating cash flow before interest and taxes.
(6) Own Work Capitalized
Own work capitalized amounted to €1,596 million in 2024 (2023:
€1,334 million) and resulted primarily from capitalized work performed in
connection with ongoing and completed IT projects and network assets.
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(7) Other Operating Income and Expenses
The table below provides details of other operating income for the periods
indicated:
Other Operating Income
€ in millions
2024
2023
Income from exchange rate differences
517
578
Gain on derivative financial instruments
(including currency derivatives)
10,195
37,273
Gain on disposal of non-current assets and
securities
129
151
Gain on the reversal of provisions
30
29
Miscellaneous
868
857
Total
11,739
38,888
Other operating income decreased by €27,149 million to €11,739 million
(2023: €38,888 million).
Income and expenses from derivative financial instruments (including
currency derivatives) relate to fair value measurement under IFRS 9.
Income from derivative financial instruments decreased year-on-year by
€27,078 million to €10,195 million (2023: €37,273 million). Income from
commodity derivatives amounted to €9,911 million (2023:
€35,931 million), mainly due to price developments on the commodity
markets (see the comments on the development of commodity prices in
Note 5). In addition, income from derivative financial instruments includes
realized income from currency derivatives of €84 million (2023:
€1,174 million).
Conversely, income from currency translation effects decreased by
€61 million to €517 million. Corresponding items from derivative financial
instruments (including currency derivatives) are included in other operating
expenses. The effects of foreign currency translation within other
operating income amounted to €645 million (2023: €611 million).
The gain on the disposal of property, plant and equipment and securities
(€129 million) was €22 million below prior year. Gains were realized on the
sale of securities in the amount of €33 million (2023: €51 million).
Miscellaneous other operating income amounted to €868 million,
remaining at the prior-year level (€857 million).
Miscellaneous other operating income also includes items such as
transactions other than ordinary business activities in the amount of
€99 million (2023: €105 million), income from contract penalties of
€76 million (2023: €67 million), rental and lease income of €69 million
(2023: €59 million) and income from the reversal of investment grants in
the amount of €48 million (2023: €25 million).
The following table provides details of other operating expenses for the
periods indicated:
Other Operating Expenses
€ in millions
2024
2023
Loss from
exchange rate differences
750
718
Loss on derivative financial instruments
(including currency derivatives)
9,860
53,345
Taxes other than income taxes
109
108
Loss on disposal of
non-current assets and securities
155
159
Impairments of financial assets
558
984
Miscellaneous
3,952
4,234
Total
15,384
59,548
Other operating expenses of €15,384 million were €44,164 million lower
than in the previous year (2023: €59,548 million). The decrease is due to
the €43,485 million decline in expenses from derivative financial
instruments (including currency derivatives) to €9,860 million (2023:
€53,345 million).
Expenses from commodity derivatives amounted to €9,702 million in 2024
(2023: €52,026 million). Similar to the development in income from
derivative financial instruments, this was mainly due to price developments
on the commodity markets over the course of the year. In addition,
expenses from derivative financial instruments (including currency
derivatives) includes, among others, realized expenses from currency
derivatives of €123 million (2023: €1,312 million).
Expenses from exchange rate differences in the amount of €750 million
increased by €32 million compared with the previous year (€718 million).
Foreign currency translation effects within other operating expenses
amounted to €757 million (2023: €707 million).
Compared to the previous year, the impairment of financial assets reduced
by -€426 million to €558 million. The reason for this is the included
expected losses of €18 million which are -€718 million lower than the
previous year (€736 million). By contrast, both the reversal of impairments
as well as also individual value adjustments in the balance sheet increased
by €292 million to €540 million.
Miscellaneous other operating expenses includes third-party services and
passthrough charges in the amount of €1,134 million (2023:
€1,204 million). Also included are IT expenses in the amount of
€759 million (2023: €654 million), advertising and marketing expenses in
the amount of €336 million (2023: €279 million), as well as consulting and
audit fees in the amount of €225 million (2023: €217 million). Additionally
reported under this item are repair expenses in the amount of €146 million
(2023: €110 million), office expenses in the amount of €121 million (2023:
€121 million), travel expenses in the amount of €112 million (2023:
€98 million), contributions and fees in the amount of €68 million (2023:
€67 million), insurance premiums in the amount of €67 million (2023:
€66 million), and rents and leases in the amount of €67 million (2023:
€60 million).
(8) Cost of Materials
The principal components of expenses for raw materials and supplies and
for purchased goods are the purchase of gas and electricity. Fuel supply is
also included in this line item to a lesser extent. Expenses for purchased
services consist primarily of network usage charges and maintenance
costs.
Cost of Materials
€ in millions
2024
2023
Expenses for raw materials and supplies and
for purchased goods
39,283
47,968
Expenses for purchased services
19,707
16,260
Total
58,990
64,228
Cost of materials of €58,990 million was significantly lower than the prior-
year level of €64,228 million. This decrease was mainly due to energy price
developments on the commodity markets. The downward price trend that
began in autumn 2023 reversed again in the second quarter of 2024.
Nevertheless, prices in 2024 remained well below 2023 levels, leading to
lower procurement costs compared with the prior year. In addition,
forward procurement contracts are recognized as derivative financial
instruments in accordance with IFRS, and on recognition this requires
adjustment to the market price at the time of delivery. The opposing effect
from the market valuation of commodity derivatives is recognized in other
operating income.
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In addition, the change in provisions for contracted sales transactions
reported that are not subject to IFRS 9 (so-called own-use contracts),
which are economically part of a portfolio that is partly offset by
procurement transactions to be accounted for as derivative financial
instruments. While significant reversals were made in the prior year due to
falling prices, there were no material changes to these provisions in the
current reporting period.
Government subsidies received reduced the cost of materials by
€147 million (2023: €453 million).
(9) Financial Result
The following table provides details of financial result for the periods
indicated:
Financial Result
€ in millions
2024
2023
Income from companies in which equity
investments are held
188
148
Fair value through P&L
112
86
Other
76
62
Loss from companies in which equity
investments are held
-88
-56
Impairment charges/reversals on other
financial assets
-81
-62
Income/loss from equity investments
19
30
Income/loss from securities, interest and
similar income
1,097
1,291
Amortized cost
223
238
Fair value through P&L
674
877
Fair value through OCI
18
20
Other interest income
182
156
Interest and similar expenses
-2,098
-2,385
Amortized cost
-883
-794
Fair value through P&L
-570
-681
Other interest expenses
-645
-910
Net interest income/loss
-1,001
-1,094
Financial result
-982
-1,064
The improvement in the financial result compared to the previous year
resulted from an improvement in net interest income/loss, which more
than offset the minor decrease in the income/loss from equity investments.
In the previous year, the falling level of interest rates led to net interest
expenses from the discounting of provisions, whereas in the reporting
period, higher interest rates led to net interest income.
Interest and similar income at amortized cost include positive effects from
cash investments by E.ON SE in the amount of €138 million (2023:
€150 million).
Interest and similar expenses at amortized cost includes the positive effect
from the difference between the nominal interest rate and the effective
interest rate of former innogy bonds, which was adjusted due to the
purchase price allocation, in the amount of €147 million, which is
€40 million lower than in the previous year. This item was also negatively
impacted by the increased interest expense from the newly issued bonds.
The valuation effects of “Securities measured at fair value through P&L”
are included in both income and expenses at fair value through P&L. These
effects accounted for €43 million in the income (2023: €86 million) and
-€12 million in the expenses (2023: -€35 million).
Other interest income includes interest income from the discounting of
provisions for asset retirement obligations in the amount of €110 million
(2023: €0 million) and other non-current provisions in the amount of
€43 million (2023: €31 million).
Other interest expenses mainly relate to net interest expenses from
pension provisions of €138 million (2023: €114 million), interest expenses
from the regular compounding of other non-current provisions of
€206 million (2023: €245 million), and interest expenses for lease
liabilities of €206 million (2023: €185 million).
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(10) Income Taxes
The following table provides details of income taxes, including deferred
taxes, for the periods indicated:
Income Taxes
€ in millions
2024
2023
Current taxes
390
948
thereof previous years
-323
106
Deferred taxes
1,379
-1,546
on temporary differences
1,479
-1,281
on loss carryforwards
39
86
on tax interest carryforwards and other
tax credits
-90
141
on valuation allowance
-49
-492
Total income taxes
1,769
-598
The income tax rate of 31 percent (2023: 31 percent) applicable in
Germany is composed of corporate income tax (15 percent), trade tax
(15 percent) and the solidarity surcharge (1 percent). The income tax rate
of 31 percent corresponds to the tax rate applicable to E.ON SE for 2024.
The differences from the effective tax rate are reconciled as follows:
Continuing operations generated tax expenses of €1,769 million in the
reporting year (2023: tax income of €598 million). This corresponds to a
tax rate of 24 percent. The tax expenses mainly comprise deferred tax
expenses on positive effects related to derivative financial instruments. In
the reporting period, countervailing effects resulted from tax income from
prior years, including €198 million from a concluded redress procedure,
and changes in the value of deferred taxes. In the previous year, negative
effects from the measurement of derivatives and changes in value of
deferred taxes led to the recognition of tax income on a net basis.
Reconciliation to Effective Income Taxes/Tax Rate
2024
2023
€ in millions
in %
€ in millions
in %
Income/loss from continuing operations before taxes
7,331
100.0
101
100.0
Expected income taxes
2,273
31.0
31
31.0
Foreign tax rate differentials
-202
-2.8
-203
-200.8
Changes in tax rate/tax law
2
0.0
30
29.6
Tax effects on tax-free income
-161
-2.2
-91
-90.4
Tax effects of non-deductible expenses and permanent differences
307
4.2
234
232.2
Tax effects on income from companies accounted for under the equity method
-43
-0.6
-102
-101.2
Tax effects of changes in value and non-recognition of deferred taxes
-81
-1.1
-618
-611.8
Tax effects of other taxes on income
28
0.4
156
154.1
Tax effects of income taxes related to other periods
-360
-4.9
-31
-31.0
Other
6
0.1
-4
-3.6
Effective income taxes/tax rate
1,769
24.1
-598
-591.9
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E.ON Integrated Annual Report 2024
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Various temporary differences as well as various unused tax loss
carryforwards and tax credits result in the following deferred tax assets
and liabilities:
Income tax assets and liabilities consist primarily of income taxes for the
respective current year and for prior-year periods that have not yet been
definitively examined by the tax authorities. These items can be found in
the balance sheet.
As of December 31, 2024, €28 million (2023: €16 million) in deferred tax
liabilities were recognized for the differences between net assets and the
tax bases of subsidiaries and associated companies (outside basis
differences). Accordingly, deferred tax liabilities were not recognized for
temporary differences of €2,404 million (2023: €2,062 million) at
subsidiaries and associated companies, as E.ON is able to control the
timing of their reversal and the temporary difference will not reverse in the
foreseeable future.
Deferred Tax Assets and Liabilities
Dec. 31, 2024
Dec. 31, 2023
€ in millions
Tax assets
Tax liabilities
Tax assets Tax liabilities
Intangible assets
299
832
108
535
Right-of-use assets
3
743
3
737
Property, plant and equipment
300
3,802
337
3,832
Financial assets
224
127
209
140
Inventories
154
3
148
13
Receivables (including derivative financial instruments)
599
3,564
1,076
5,673
Provisions for pensions and similar obligations
1,761
77
2,018
55
Miscellaneous provisions
1,162
187
1,326
247
Liabilities (including derivative financial instruments)
4,769
1,050
8,289
1,542
Loss carryforwards
523
–
598
–
Other
1,232
421
878
286
Subtotal
11,026
10,806
14,990
13,060
Changes in value
-559
–
-648
–
Deferred taxes (gross)
10,467
10,806
14,342
13,060
Netting
-8,704
-8,704
-10,837
-10,837
Deferred taxes (net)
1,763
2,102
3,505
2,223
Current
1,108
104
1,935
274
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E.ON Integrated Annual Report 2024
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No deferred tax assets were recognized, or were no longer recognized, on
the following tax loss carryforwards, interest carryforwards and other
deferred tax assets:
The expiring tax loss carryforwards relate exclusively to countries other
than Germany.
Deferred tax assets were not recognized, or are no longer recognized, in the
amount of €352 million (2023: €776 million) for temporary differences
which are recognized in income and equity.
Current tax expense was reduced by €40 million (2023: €26 million) due to
the use of previously unrecognized tax losses. The change in previously
unrecognized tax losses, interest carryforwards and temporary differences
reduced deferred tax expense by €91 million (2023: €77 million).
As of December 31, 2024, E.ON reported deferred tax assets for
companies that incurred losses in the current or the prior-year period that
exceed the deferred tax liabilities by €672 million (2023: €2,028 million).
Of this amount, €667 million (2023: €1,672 million) is attributable to
companies in Germany. This amount mainly includes deductible temporary
differences. Recognition is based, among other factors, on taxable profits
realized in the current financial year and on sufficient taxable profits in
subsequent fiscal years. These factors are based on scenario analyses as
well as stable earnings contributions from the regulated area. When
considered in the aggregate, the management has concluded that each
company will generate sufficient taxable income against which the
previously unused tax losses and deductible temporary differences can be
offset.
Income taxes recognized in other comprehensive income break down as
follows:
Income Taxes of Other Comprehensive Income
€ in millions
2024
2023
Deferred taxes within OCI
344
602
Current taxes within OCI
-2
-2
Total
342
600
Tax Loss Carryforwards, Tax Interest Carryforwards and Other Tax Credits without Recognition of
Deferred Tax Assets
December 31, 2024
December 31, 2023
€ in millions
Tax loss
carryforwards
corporate tax
Tax loss
carryforwards
trade tax and
local income
taxes
Tax interest
carryforwards
and other tax
credits
Tax loss
carryforwards
corporate tax
Tax loss
carryforwards
trade tax and
local income
taxes
Tax interest
carryforwards
and other tax
credits
Amounts at the balance sheet date
10,232
2,158
2,767
10,349
2,214
2,837
of which amounts without recognition of deferred
taxes
8,795
1,799
2,096
8,678
1,777
2,515
‒ unlimited duration
4,642
1,790
2,096
4,498
1,727
2,515
‒ limited duration
4,153
9
–
4,180
50
–
‒ of which up to 5 years
182
9
–
182
50
–
‒ of which up to 9 years
252
–
–
283
–
–
‒ of which 10 years or longer
3,719
–
–
3,715
–
–
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E.ON Integrated Annual Report 2024
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Changes in income taxes recognized in other comprehensive income break
down as follows:
Additions and Disposals
Effects from additions and disposals and from discontinued operations
resulted in changes in deferred taxes totaling €18 million (2023:
€27 million).
Changes in deferred tax assets in the current year, with net disposals of
€16 million, mainly relate to receivables (-€13 million). The change in
deferred tax liabilities, with a net addition of €2 million, mainly relate to
intangible assets (+€6 million) and receivables (-€8 million).
In the previous year, changes in deferred taxes, with a net addition of
€38 million, related mainly to liabilities (+€26 million), property, plant and
equipment (+€11 million) and loss carryforwards (+€7 million). Changes in
deferred tax liabilities, with a net addition of €65 million, relate primarily to
property, plant and equipment (+€39 million), receivables (+€34 million)
and liabilities (-€16 million).
Global Minimum Tax
The E.ON Group is included in the scope of application of the OECD Model
Rules of Pillar 2 for the national implementation of the global minimum tax.
The Model Rules were transposed into German law through the
introduction of a minimum tax law in December 2023, which applies to all
fiscal years beginning after December 31, 2023. The E.ON Group applies
the exemption in IAS 12 for the recognition and disclosure of information
on deferred tax assets and liabilities in connection with income taxes from
global minimum taxation.
The minimum tax legislation applicable from 2024 requires E.ON to
determine the effective tax rate for each country in which business units as
defined by the law exist and, if the effective tax rate determined is below
the minimum tax rate of 15 percent, to pay a so-called supplementary tax
equal to the difference between the effective tax rate and the minimum tax
rate.
The E.ON Group carried out an analysis as of the reporting date to
determine the impact and the jurisdictions in which the Group could be
exposed to potential effects in connection with a Pillar 2 supplementary
tax.
The first step was to determine whether the safe harbor regulations were
applicable. None of the CbCR safe harbor tests is relevant for the United
Kingdom and a simplified Pillar 2 calculation as of December 31, 2024
yielded a qualified domestic minimum top-up tax of €7 million, which is
included in consolidated tax expenses.
(11) Personnel-Related Information
Personnel Costs
The following table provides details of personnel costs for the periods
indicated:
Personnel Costs
€ in millions
2024
2023
Wages and salaries
5,339
4,908
Social security contributions
852
772
Pension costs and other employee benefits
343
330
Pension costs
321
304
Total
6,534
6,010
Personnel costs of €6,534 million were €524 million higher than the prior-
year figure of €6,010 million. The change is primarily attributable to the
higher headcount and tariff increases.
Share-Based Payment
The expenses for share-based payment in 2024 (the E.ON Performance
Plan) amounted to €69.7 million (2023: €93.3 million).
Employee Stock Purchase Program
The voluntary employee stock purchase program took place again in 2024,
giving employees in the German Group companies the opportunity once
again to purchase E.ON shares at favorable conditions. The favorable
pricing conditions granted within the framework of the employee stock
purchase program (IFRS 2, “Share-based Payment”) resulted in personnel
expense of €7.8 million; the offsetting entry was made in equity in
additional paid-in capital.
Long-term Variable Compensation
Members of the Management Board of E.ON SE and certain executives of
the E.ON Group receive share-based payment as part of their voluntary
long-term variable compensation. The purpose of such compensation is to
reward their contribution to E.ON’s growth and to further the long-term
success of the Company. This variable compensation component,
comprising a long-term incentive effect along with a certain element of
risk, provides for a logical linking of the interests of shareholders and
management.
The following discussion includes reports on the E.ON Performance Plan
introduced in 2017.
Changes in Income Taxes of Other Comprehensive Income
2024
2023
€ in millions
Before
income taxes
Income taxes
After
income taxes
Before
income taxes
Income taxes
After
income taxes
Cash flow hedges
-144
47
-97
-675
207
-468
Fair value measurement of financial instruments
37
-10
27
76
-13
63
Currency translation adjustments
-193
-12
-205
-15
23
8
Remeasurements of defined benefit plans
448
-283
165
-1,427
272
-1,155
Companies accounted for under the equity method
686
–
686
477
–
477
Total
834
-258
576
-1,564
489
-1,075
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E.ON Performance Plan (EPP)
In the years 2017 to 2024, E.ON granted the members of the Management
Board of E.ON SE and certain executives of the E.ON Group virtual shares
under the E.ON Performance Plan. The vesting period of each tranche is
four years. Vesting periods start on January 1 of each year.
The beneficiary will receive virtual shares in the amount of the agreed
target. The conversion into virtual shares will be based on the fair market
value on the date when the shares are granted. The number of virtual
shares allocated may change during the four-year vesting period. For
tranches granted through 2021, the only relevant criterion was the total
shareholder return (“TSR”) of E.ON stock compared with the TSR of the
companies in a peer group (“relative TSR”). The final number of virtual
shares allocated in the 2022 tranche depends on three performance
criteria, namely, relative TSR, ROCE, and the E.ON Sustainability Index.
The TSR is the return on E.ON stock, which takes into account the stock
price plus the assumption of reinvested dividends, adjusted for changes in
capital. The peer group used for relative TSR will be the other companies in
E.ON’s peer index, the STOXX® Europe 600 Utilities. During a tranche’s
vesting period, E.ON’s TSR performance is measured once a year in
comparison with the companies in the peer group and set for that year.
The E.ON Sustainability Index reflects the four most relevant ESG aspects
(ESG = Environment, Social, Governance) at E.ON. In 2024 these aspects
were: climate action, diversity, health and safety, and ESG ratings.
For the tranches granted up to and including 2021, the final number of
virtual shares is determined as follows: E.ON’s TSR performance in a given
year determines the final number of one-fourth of the virtual shares
granted at the beginning of the vesting period. If target attainment in a
year is below the threshold defined by the Supervisory Board upon
allocation, the number of virtual shares is reduced by one-fourth. If E.ON’s
performance is at the upper cap or above, the fourth of the virtual shares
allocated for the year in question will increase, but to a maximum of 150
percent.
For the tranche granted beginning in 2022, in addition to TSR (50 percent
weighting), ROCE (25 percent weighting) and the E.ON Sustainability Index
(25 percent weighting) are also taken into account as performance criteria.
The resulting number of virtual shares at the end of the vesting period is
multiplied by the average price of E.ON stock in the final 60 days of the
vesting period. This amount is increased by the dividends distributed on
E.ON stock during the vesting period and then paid out. The sum of the
payouts is capped at 200 percent of the agreed target.
The virtual shares are canceled if the employment relationship of the
beneficiary ends before the end of the term for reasons within the control
of the beneficiary. If the employment relationship of the beneficiary is
terminated before retirement, through the end of a limited term or for
operational reasons before the end of the term, the virtual shares do not
expire but are settled at maturity.
If the employment relationship ends before maturity due to death or
permanent invalidity, the virtual shares are settled before maturity. The
same shall apply in the case of a change in control related to E.ON SE and
also if the allocating company leaves the E.ON Group before maturity.
The following are the base parameters of the tranches of the E.ON
Performance Plan active in 2024:
The provision for the fifth, sixth, seventh and eighth tranches of the E.ON
Performance Plan as of the balance sheet date is €163.5 million (2023:
€165.0 million). The expense for the fifth, sixth, seventh and eighth
tranches amounted to €69.7 million in the 2024 fiscal year (2023:
€93.3 million).
Employees
In 2024, E.ON employed an average personnel of 75,046 (2023: 71,629).
Part-time employees were taken into account on a pro rata basis when this
figure was calculated. In addition, an average of 2,249 apprentices were
employed in the reporting year in Germany (2023: 2,064).
The breakdown by business division is shown in the following table:
(12) Other Information
German Corporate Governance Code
On December 17, 2024, the Management Board and the Supervisory
Board of E.ON SE made a declaration of compliance pursuant to Section
161 of the German Stock Corporation Act (“AktG”). The declaration has
been made permanently and publicly accessible to stockholders on the
Company’s website (www.eon.com).
Fees and Services of the Independent Auditor
During 2024, the following fees were recorded as expenses for the services
provided by the independent auditor of the Consolidated Financial
Statements, KPMG, and by companies of the international KPMG network:
E.ON Performance Plan – Virtual Shares
8th tranche
7th tranche
6th tranche
5th tranche
Date of issuance
Jan. 1, 2024
Jan. 1, 2023
Jan. 1, 2022
Jan. 1, 2021
Term
4 years
4 years
4 years
4 years
Target value at issuance
€ 11.92
€ 9.32
€ 12.76
€ 7.65
Core Workforce1
FTE2
2024
2023
+/- in %
Energy Networks
41,293
39,579
4
Energy Infrastructure
Solutions
7,729
7,752
0
Energy Retail
20,132
18,569
8
Corporate Functions/Other
5,892
5,729
3
E.ON Group
75,046
71,629
5
1Excluding apprentices, interns and working students.
2Full-time equivalents.
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
159
Independent Auditor Fees
€ in millions
2024
2023
Financial statement audits
36
34
Domestic
25
25
Other attestation services
8
7
Domestic
8
7
Tax advisory services
0
0
Domestic
0
0
Other services
0
0
Domestic
0
0
Total
44
41
Domestic
33
32
The fees for financial statement audits relate to the audit of the
Consolidated Financial Statements and the legally mandated financial
statements of E.ON SE and its affiliates. They also include the fees for
auditing reviews of the IFRS interim financial statements and other audit
services directly required by the audit of the financial statements.
The fees for other attestation services include all attestation services that
are not auditing services and are not used in connection with the audit of
the Consolidated Financial Statements. These fees are for legally required
attestation services and for other voluntary attestation services (e.g., the
audit of the sustainability reporting, Renewable Energy Sources Act (EEG)
and the Act on Combined Heat and Power Generation (KWKG) and audit
services in connection with new IT systems).
List of Shareholdings
Details of the companies included in the consolidated financial statements,
the subsidiaries and affiliated companies of the E.ON Group pursuant to
Section 313 (2) HGB as well as a list of domestic subsidiaries that availed
themselves in 2024 of certain exemptions granted under Section 264 (3),
and Section 264b HGB, are included in the audited consolidated financial
statements that have been sent for entry in the Commercial Register. This
information can also be accessed at www.eon.com/shareownership2024.
(13) Earnings per Share
The computation of basic and diluted earnings per share for the periods
indicated is shown below:
Earnings per Share
€ in millions
2024
2023
Income/loss from continuing operations
5,562
699
Less: Non-controlling interests
-1,031
-243
Income/loss from continuing operations
(attributable to shareholders of E.ON SE)
4,531
456
Income/loss from discontinued operations,
net
–
61
Less: Non-controlling interests
–
–
Income/loss from discontinued operations,
net (attributable to shareholders of E.ON SE)
–
61
Net income/loss attributable to shareholders
of E.ON SE
4,531
517
in €
Earnings per share (attributable to
shareholders of E.ON SE)
from continuing operations
1.73
0.18
from discontinued operations
–
0.02
from net income/loss
1.73
0.20
Weighted-average number of shares
outstanding (in millions)
2,612
2,611
The computation of diluted earnings per share is identical to that of basic
earnings per share because E.ON SE has issued no potentially dilutive
ordinary shares. The slight increase in the weighted-average number of
shares outstanding resulted primarily from the issue of treasury shares in
E.ON SE under the voluntary employee stock purchase program.
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
160
(14) Goodwill, Intangible Assets, Right-of-use Assets and
Property, Plant and Equipment
The changes in goodwill and intangible assets, in right-of-use assets, and in
property, plant and equipment, are presented in the tables on the following
pages:
Goodwill, Intangible Assets, Right-of-use Assets and Property, Plant and
Equipment
€ in millions
Acquisition and production costs
Accumulated depreciation
Net
carrying
amounts
Jan. 1,
2024
Exchange
rate
differ-
ences
Additions
in scope
of
consoli-
dation
Additions
Disposals1 Transfers
Dec. 31,
2024
Jan. 1,
2024
Exchange
rate
differ-
ences
Changes
in scope
of
consoli-
dation
Additions
Disposals1
Transfers
Impair-
ment
Reversals
Dec. 31,
2024
Dec. 31,
2024
Goodwill
18,911
55
38
–
-27
-3
18,974
-1,785
1
–
–
7
4
-628
–
-2,401 16,573
Customer relationships and similar
items
2,107
7
–
–
-4
-112
1,998
-1,561
-6
–
-165
1
106
–
–
-1,625
373
Concessions, commercial property
rights, licenses, and similar rights
3,720
-15
30
488
-61
122
4,284
-1,596
8
-1
-402
41
24
-1
5
-1,922
2,362
Development expenditures
918
1
–
146
-124
344
1,285
-566
2
–
-168
119
-167
-9
–
-789
496
Advance payments
585
-1
–
225
-6
-316
487
-15
–
–
–
–
17
-9
–
-7
480
Intangible assets
7,330
-8
30
859
-195
38
8,054
-3,738
4
-1
-735
161
-20
-19
5
-4,343
3,711
Land and buildings
950
3
3
135
-144
-1
946
-402
-1
-2
-110
124
5
-1
–
-387
559
Networks
2,878
–
–
480
-59
–
3,299
-904
-1
–
-262
25
–
–
–
-1,142
2,157
Storage, e-charging and production
capacities
4
–
–
1
–
–
5
-2
–
–
-1
–
–
–
–
-3
2
Technical equipment and machine
85
1
–
13
-1
–
98
-16
-1
–
-10
–
–
–
–
-27
71
Fleet, office and business
equipment
227
-2
1
108
-47
–
287
-110
3
–
-62
36
–
–
–
-133
154
Right-of-use assets
4,144
2
4
737
-251
-1
4,635
-1,434
–
-2
-445
185
5
-1
–
-1,692
2,943
Real estate and leasehold rights
1,134
-8
–
37
-13
58
1,208
-65
2
–
-3
1
-24
–
–
-89
1,119
Buildings
3,521
-25
39
108
-30
130
3,743
-1,494
13
-38
-109
25
16
–
–
-1,587
2,156
Technical equipment, plant and
machinery
63,664
-459
37
3,432
-581
1,883
67,976
-31,097
212
-7
-2,211
442
33
-34
13
-32,649 35,327
Other equipment, fixtures,
furniture and office equipment
1,659
-7
1
219
-80
38
1,830
-982
1
–
-175
73
28
–
–
-1,055
775
Advance payments and
construction in progress
4,527
-23
42
2,715
-73
-2,180
5,008
-118
–
–
–
34
10
-42
–
-116
4,892
Property, plant and equipment
74,505
-522
119
6,511
-777
-71
79,765
-33,756
228
-45
-2,498
575
63
-76
13
-35,496 44,269
1Includes reclassifications to assets/disposal groups held for sale (see Note 4).
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
161
Changes in Goodwill and in Other Reversals and Impairment Charges by Segment from January 1, 2024
€ in millions
Energy Networks
Customer Solutions2
Germany
Sweden
ECE/Turkey1
Energy
Infrastructure
Solutions
Germany
UK
The Nether-
lands
Sonstige
Corporate
Functions/
Other
E.ON Group
Net carrying amount of goodwill as of December 31, 2023
7,651
83
245
–
6,752
1,886
81
428
–
17,126
Reallocation EIS2 as of January 1, 2024
-50
–
–
2,103
-1,269
-615
–
-169
–
–
€ in millions
Energy Networks
Energy Retail2
Germany
Sweden
Central
Eastern
Europe1
South Eastern
Europe1
Energy
Infrastructure
Solutions
Germany
UK
The Nether-
lands
Other
Corporate
Functions/
Other
E.ON Group
Net carrying amount of goodwill as of January 1, 2024
7,601
83
43
202
2,103
5,483
1,271
81
259
–
17,126
Changes resulting from acquisitions and disposals
–
–
–
–
–
–
–
–
–
–
–
Impairment charges
–
–
–
–
-628
–
–
–
–
–
-628
Other changes3
–
-2
-1
-14
15
–
61
36
-20
–
75
Net carrying amount of goodwill as of December 31, 2024
7,601
81
42
188
1,490
5,483
1,332
117
239
–
16,573
Growth rate (in %)4
1.25
–
–
–
1.25
1.25
1.25
–
–
–
–
Cost of capital (in %)4
4.2
–
–
–
5.0 - 6.6
6.3
6.7
–
–
–
–
Other non-current assets5
Impairment
-5
-1
–
–
-74
-10
–
–
-5
-1
-96
Reversals
5
–
–
5
9
–
–
–
-1
–
18
1Effective January 1, 2024, the Energy Networks business unit in East-Central Europe/Turkey (ECE/Turkey) has been divided into Central Eastern Europe and South Eastern Europe.
2Since January 1, 2024, the Energy Infrastructure Solutions business unit has been added to the Energy Networks and Customer Solutions (now Energy Retail) business units, primarily spun off from the Customer Solutions segment. The Customer Solutions business unit has been renamed to Energy Retail.
3Other changes include effects from intragroup restructuring (excluding the reallocation of EIS), transfers, exchange rate differences and reclassifications to assets held for sale.
4Presented here are the growth rates and cost of capital for selected cash-generating units whose respective goodwill is material when compared with the carrying amount of all goodwill.
5Other non-current assets consist of intangible assets, right-of-use assets and of property, plant and equipment.
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E.ON Integrated Annual Report 2024
162
Goodwill, Intangible Assets, Right-of-use Assets and Property, Plant and
Equipment
€ in millions
Acquisition and production costs
Accumulated depreciation
Net
carrying
amounts
Jan. 1,
2023
Exchange
rate
differ-
ences
Addition
s in
scope of
consoli-
dation1
Additions
Disposals1
Transfers1
Dec. 31,
2023
Jan. 1,
2023
Exchange
rate
differ-
ences
Changes
in scope
of
consoli-
dation1 Additions
Disposals1
Transfers1
Impair-
ment
Reversals
Dec. 31,
2023
Dec. 31,
2023
Goodwill
18,799
50
62
–
–
–
18,911
-1,782
-3
–
–
–
–
–
–
-1,785 17,126
Customer relationships and
similar items
2,077
12
43
–
-15
-10
2,107
-1,389
-9
-9
-177
11
12
–
–
-1,561
546
Concessions, commercial
property rights, licenses, and
similar rights
3,394
1
23
374
-204
132
3,720
-1,485
-2
-17
-294
180
-6
-2
30
-1,596
2,124
Development expenditures
1,023
7
–
47
-257
98
918
-624
-6
–
-135
256
–
-57
–
-566
352
Advance payments
469
-1
–
343
-15
-211
585
-12
1
–
–
–
–
-4
–
-15
570
Intangible assets
6,963
19
66
764
-491
9
7,330
-3,510
-16
-26
-606
447
6
-63
30
-3,738
3,592
Land and buildings
826
9
9
177
-76
5
950
-345
-2
-5
-110
55
7
-2
–
-402
548
Networks
2,438
–
–
489
-50
1
2,878
-669
–
–
-248
14
-1
–
–
-904
1,974
Storage, e-charging and
production capacities
3
–
–
1
–
–
4
-1
–
–
-1
–
–
–
–
-2
2
Technical equipment and
machine
43
-1
–
44
-1
–
85
-12
–
–
-5
1
–
–
–
-16
69
Fleet, office and business
equipment
193
2
10
82
-56
-4
227
-99
–
-5
-53
44
3
–
–
-110
117
Right-of-use assets
3,503
10
19
793
-183
2
4,144
-1,126
-2
-10
-417
114
9
-2
–
-1,434
2,710
Real estate and leasehold rights
1,172
2
4
29
-30
-43
1,134
-75
–
–
-2
17
–
-5
–
-65
1,069
Buildings
4,118
29
59
95
-137
-643
3,521
-1,613
-8
-19
-111
125
133
-2
1
-1,494
2,027
Technical equipment, plant and
machinery
58,556
138
624
2,701
-531
2,176
63,664
-28,561
-51
-370
-2,050
315
-330
-52
2
-31,097 32,567
Other equipment, fixtures,
furniture and office equipment
1,395
-2
109
211
-137
83
1,659
-837
1
-79
-150
97
-13
-1
–
-982
677
Advance payments and
construction in progress
3,327
13
24
2,570
-45
-1,362
4,527
-63
-1
–
–
–
–
-54
–
-118
4,409
Property, plant and equipment
68,568
180
820
5,606
-880
211
74,505
-31,149
-59
-468
-2,313
554
-210
-114
3
-33,756 40,749
1Adjustment of the previous year's figures due to adjustments in the column presentation. The reclassifications to assets/disposal groups held for sale (IFRS 5) are now shown under disposals and no longer under changes in scope of consolidation (now called: additionsin scope of consolidation). Internal
transactions are now shown under reclassifications and no longer under changes in scope of consolidation (now called: additions in scope of consolidation).
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E.ON Integrated Annual Report 2024
163
Goodwill and Intangible Assets
The changes in goodwill within the segments, as well as the allocation of
impairments and their reversals to each reportable segment, are presented
in the tables above.
Impairments
To perform the impairment tests, E.ON first determines the fair values less
costs of disposal of its cash-generating units. Because there were no
binding sales transactions or market prices for the respective cash-
generating units in 2024, fair values were calculated based on discounted
cash flow methods.
Valuations are based on the medium-term corporate planning authorized
by the Management Board. The calculations for impairment-testing
purposes are generally based on the five planning years of the medium-
term plan plus two additional detailed planning years. Deviations from this
are made in certain justified exceptional cases. The cash flow assumptions
extending beyond the detailed planning period are determined using
sustainable, business and currency-specific growth rates based on the
analysis of past years and predictions for the future. In fiscal year 2024,
the sustainable, currency-specific inflation rate used for the euro area was
1.25 percent (2023: 1.25 percent). The discount rates after taxes used for
discounting cash flows in the annual impairment test are calculated using
market data for each cash-generating unit, and as of the valuation date,
ranged between 4.2 and 11.6 percent after taxes (2023: between 4.3 and
12.6 percent).
The principal assumptions underlying the determination by management of
recoverable amount are the respective forecasts of the growth rates and
the cost of capital, and specifically of revenue and EBITDA margin (in the
Energy Retail business), of Regulated Asset Base and regulatory return (in
the Energy Networks business), and of non-current assets and long-term
project returns (in the Energy Infrastructure Solutions business). The
assumptions used in these forecasts regarding the development of
commodity market prices, future electricity and gas prices in the wholesale
and retail markets are based on external market data from reputable
suppliers as well as internal assessments and also appropriately take into
account climate-related impacts on market conditions and macroeconomic
linkages as well as the sustainability targets anchored in the Group
strategy, such as the reduction of Scope 3 emissions by 100 percent by
2050. For example, impacts of climate targets on CO2 prices and changing
weather conditions (temperature, wind, etc.) are included. The assumed
development of all of the key influencing factors mentioned here
corresponds to the expectations set out in the forecast report.
Overall, medium-term planning assumes that the regulatory environment
will remain stable.
Against the backdrop of the expansion of the network, which is key to
achieving climate protection targets, the detailed planning period provides
for a significant increase in investments in the Energy Networks Germany
segment, with a corresponding increase in the regulated asset base. We
expect regulatory returns to remain stable.
In the Energy Retail Germany and UK segments, we anticipate a modestly
lower sales revenue during our detailed planning period compared to the
2024 financial year. The decline in revenues in spite of a comparable
number of customers is due to the assumption that prices on the
commodity markets will normalize. We expect a moderate increase in
estimated EBITDA margins in the detailed planning period in the Energy
Retail UK and Germany segments due to the planned portfolio optimization
and the expansion of our growth business areas.
In the Energy Infrastructure Solutions segment, we anticipate an increase
in investments during our detailed planning period compared to the 2024
financial year. These investments are primarily growth investments given
that the original baseline for capital expenditures in the past few years was
considerably lower. We also expect that long-term project returns will
exceed the capital costs.
The above discussion applies accordingly to the testing for impairment of
e.g. intangible assets and property, plant and equipment under IAS 36 as
well as of equity investments, which are subject to the application of the
equity method (IAS 28), and of groups of assets. If the goodwill of a cash-
generating unit is combined with assets or groups of assets for impairment
testing, the assets must be tested first.
Goodwill
On September 11, 2023, the Board of Management of E.ON SE adopted a
new management concept for the Group, which took effect as of January
1, 2024, and due to the concept in IFRS 8, requires a change in the
Changes in Goodwill and in Other Reversals and Impairment Charges by Segment from January 1, 2023
€ in millions
Energy Networks
Customer Solutions
Germany
Sweden
ECE/Turkey
Germany
UK
The
Netherlands
Other
Corporate
Functions/
Other
E.ON Group
Net carrying amount of goodwill as of January 1, 2023
7,597
83
236
6,752
1,848
73
428
–
17,017
Changes resulting from acquisitions and disposals
–
–
–
–
–
–
–
–
–
Impairment charges
–
–
–
–
–
–
–
–
–
Other changes1
54
–
9
–
38
8
–
–
109
Net carrying amount of goodwill as of December 31, 2023
7,651
83
245
6,752
1,886
81
428
–
17,126
Growth rate (in %)2, 3
1.25
–
–
1.25
1.25
–
–
–
–
Cost of capital (in %)2, 3
4.3
–
–
6.0
6.4
–
–
–
–
Other non-current assets4
Impairment
-6
–
–
-124
-37
–
-11
–
-178
Reversals
1
–
30
2
–
–
–
–
33
1Other changes include effects from intragroup restructuring, transfers, exchange rate differences and reclassifications to assets held for sale.
2Presented here are the growth rates and cost of capital for selected cash-generating units whose respective goodwill is material when compared with the carrying amount of all goodwill.
3Other non-current assets consist of intangible assets, right-of-use assets and of property, plant and equipment.
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E.ON Integrated Annual Report 2024
164
definition of the operating segments and thus also a reallocation of the
existing goodwill of all segments affected by the changes as of January 1,
2024.
The goodwill reallocation was conducted on the basis of relative values in
accordance with the requirements of IAS 36. The Energy Infrastructure
Solutions business is much more capital-intensive than the Energy Retail
business and therefore the carrying amount of the Energy Infrastructure
Solutions segment was high in comparison to the recoverable amount. This
circumstance triggered an ad-hoc impairment test as of January 1, 2024.
Including the newly allocated goodwill, the carrying amount in the Energy
Infrastructure Solutions segment exceeded the recoverable amount,
necessitating a reallocation-induced impairment charge of originally
€624 million on the newly allocated goodwill in the Energy Infrastructure
Solutions segment, which is presented within the item of “Depreciation,
amortization and impairment charges.” The recoverable amount of the
cash-generating unit Energy Infrastructure Solutions amounted to
€6,017 million on January 1, 2024. Due to exchange rate movements and
the application of IAS 21.BC32, the goodwill impairment increased by
another €4 million as of December 31, 2024. Thus, the goodwill in the
Energy Infrastructure Solutions segment as of December 31, 2024
amounted to €1,490 million after the total impairment charge of
€628 million.
The fair value less costs of disposal, which was underlying in the course of
the goodwill reallocation and which determined the recoverable amount for
the trigger-based impairment test as of January 1, 2024, was calculated
on the basis of a discounted cash flow method, which corresponds to Level
3 in the IFRS 13 hierarchy. The valuation was generally based on the
medium-term planning authorized by the Management Board, which
covered three planning years plus two additional detailed planning years.
The cash flow assumptions extending beyond the detailed planning period
were determined using a sustainable, business- and currency-specific
growth rate of 1.25 percent based on the analysis of past years and
predictions for the future. Other key assumptions underlying the
determination by management of recoverable amount were forecasts of
company-specific investment activity, costs of capital, revenue and
EBITDA margin. In the Energy Infrastructure Solutions segment,
substantially higher investments and revenues were anticipated during the
detailed planning period. In addition, a moderate increase in assumed
EBITDA margins during the detailed planning period was anticipated in the
Energy Infrastructure Solutions segment due to portfolio optimization and
the expansion of growth business areas. The country-specific, after-tax
interest rates applied for discounting purposes in the Energy Infrastructure
Solutions segment were determined on the basis of market data and
ranged from 5.4 to 7.3 percent as of the valuation date of January 1, 2024.
All other things being equal, the worsening of any key valuation parameter
would have lowered the fair value less costs of disposal of the Energy
Infrastructure Solutions segment and would have necessitated an
additional impairment charge.
The performance of the annual goodwill impairment tests in the 2024
financial year did not result in any impairments under IAS 36 as of
October 1. The determination of a value in use was not necessary for any
cash generating unit.
Of all the cash-generating units whose respective goodwill as of the
balance sheet date is material in relation to the total carrying amount of all
goodwill, the Energy Infrastructure Solutions cash-generating unit showed
the lowest headroom of recoverable amount over carrying amount
(€255 million). This surplus would be depleted if the after-tax interest rate
applied for discounting purposes (see table Changes in Goodwill and in
Other Reversals and Impairment Charges by Segment from
January 1, 2024) were 5.6 percent higher or if the long-term project
returns were 2.6 percent lower. The long-term project return used in the
valuation for impairment test purposes was 6.9 percent on average. For
the other material valuation parameters, only a significant change that is
not considered realistic would necessitate the recognition of goodwill
impairment.
The tested goodwill of all other cash-generating units whose respective
goodwill is material shows a surplus of recoverable amounts over the
respective carrying amounts and, therefore, based on current assessment
of the economic situation, likewise only a significant change in the material
valuation parameters that is not considered realistic would necessitate the
recognition of goodwill impairment in these cash-generating units.
Intangible Assets
In 2024, approximately €19 million of impairments were recognized on
intangible assets. In terms of amount, the largest impairment loss occurred
in the Energy Retail Germany segment. The German Sales Technology
Platform, a platform for technological solutions in German sales, was again
written down by a further amount of €7 million in the reporting period
(2023: €44 million). The main reason for this latest impairment was the
planned reorganization of the billing system within the sales group: The
Powercloud software program will be replaced ahead of schedule due to
technical problems that prevent the realization of the system’s full
potential. As of December 31, 2024, the new carrying amount of the sales
platform, which consists of several assets and sub-assets, amounts to
€64 million. The other impairments recognized in the reporting period
consist of various insignificant amounts.
Reversals of impairments on intangible assets amounted to around
€5 million in the current year. A write-up of €5 million was recognized on
the Delgaz power grid in the cash generating unit Energy Networks
Romania, bringing the new carrying amount to €582 million. The main
reasons for this write-up are the more stable market environment
compared to the prior years with a functioning allocation mechanism,
including a price cap for energy procurement for the distribution system
operator’s technological consumption, as well as the positive development
of the regulated asset base.
In 2024, the Company recorded an amortization expense on intangible
assets of €735 million (2023: €606 million).
As of December 31, 2024, the closing balance of intangible assets with an
indefinite useful life amounted to €85 million (2023: €82 million). These
assets are mainly attributable to concession rights from the Swedish
energy grid with a value of €36 million.
In the year under review, €156 million (2023: €104 million) of research
and development costs within the meaning of IAS 38 were recognized as
expenses.
Rights of Use
In 2024, the Company recorded an amortization expense of €445 million
(2023: €417 million). Impairment charges on rights of use amounted to
€1 million (2023: €2 million).
Property, Plant and Equipment
Impairments on property, plant and equipment amounted to €76 million in
2024.
The largest impairment charge recognized in the reporting period was
taken on a biomass power plant under construction in Germany, which
belongs to the cash generating unit Energy Infrastructure Solutions.
Whereas the project had already been negatively affected in the past by
construction delays and rising procurement costs, as well as financial and
quality-related challenges on the part of technical suppliers, the latest
impairment loss of €30 million (2023: €28 million) was recognized to
account for newer developments (including substantially higher fuel costs
and the decision of a major customer of steam deliveries to close its
production site). The new carrying amount as of December 31, 2024 is
€113 million. In the United Kingdom, impairments totaling €18 million
(2023: €14 million) were recognized in the cash generating unit Energy
Infrastructure Solutions, due to the full write-off of conventional meters
that were no longer needed and which have been replaced by smart energy
meters. The other impairments recognized in the reporting period consist
of various insignificant amounts.
Reversals of impairments on property, plant and equipment amounted to
around €13 million in the current year (2023: €3 million). A district heating
and power generating plant in the cash generating unit Energy
Infrastructure Solutions (specifically in the German operations) was written
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E.ON Integrated Annual Report 2024
165
up by €8 million to the current fair value of €54 million. The main reasons
for this write-up were the improved profit outlook due to the imminent
termination of a less advantageous contract and the conclusion of an
agreement with a customer on the subject of natural gas costs for
operating the turbine. In addition, the carrying amount of a gas storage
facility in the cash generating unit Energy Networks Germany was written
up by €4 million to the new carrying amount of €10 million. The main
reasons for this write-up were the substantially improved economic
conditions and the attendant increase in profit expectations.
Depreciation amounted to €2,498 million in 2024 (2023: €2,313 million).
In 2024, land and buildings as well as technical equipment and machinery
in the amount of € 345 million (2023: €173 million) were subject to
restrictions on disposal.
Borrowing costs in the amount of €15 million were capitalized in 2024
(2023: €8 million) as part of the historical cost of property, plant and
equipment.
(15) Companies Accounted for under the Equity Method
and Other Financial Assets
The following table shows the structure of the companies accounted for
under the equity method and the other financial assets as of the dates
indicated:
Companies accounted for under the equity method consist solely of
associates and joint ventures.
The €458 million increase in the carrying amounts of companies measured
at equity compared with December 31, 2023, was mainly due to the
increase in the carrying amount of the application of IAS 29 in Turkey.
The net income from companies measured at equity of €258 million
includes impairments of €448 million (2023: €237 million) and reversals of
impairment losses of €195 million (2023: €7 million). These impairments
and reversals primarily relate to the application of IAS 29 in Turkey.
In April 2022, Turkey was classified as a hyperinflationary economy.
Consequently, since the second quarter of 2022, the financial statements
prepared on the basis of historical cost have been adjusted in accordance
with IAS 29 for the first time for two Turkish investees included in the
Group using the equity method (joint ventures). Under IAS 29, financial
statements in the functional currency of a hyperinflationary economy must
be expressed in terms of the measuring unit current at the balance sheet
date in order to reflect the current purchasing power. As a result, non-
monetary assets and liabilities, among other things, are generally adjusted
using a general price index and a gain or loss on the net monetary position
is recognized. The adjustment under IAS 29 is made on the basis of the
consumer price index published by the Turkish Statistical Institute.
As of December 31, 2024, this consumer price index amounted to
2,684.55 index points (December 31, 2023: 1,859.38).
The transition effect as of January 1, 2022, amounted to €612 million (in
foreign currency OCI), partially offset by a write-down in accumulated
retained earnings (-€381 million).
The amount shown for non-current securities relates primarily to fixed-
income securities.
Impairments on other financial assets amounted to €84 million (2023:
€63 million). Write-ups totaled €3 million (2023: €1 million). The carrying
amount of other financial assets with impairment losses was €73 million as
of the end of the fiscal year (2023: €42 million); the carrying amount of the
other financial assets written up amounts to €12 million (2023: €6 million).
Shares in Companies Accounted for under the Equity
Method
The carrying amounts of the associates accounted for under the equity
method totaled €2,927 million (2023: €2,923 million), and those of the
joint ventures totaled €4,184 million (2023: €3,730 million).
Investment income generated from companies accounted for under the
equity method amounted to €466 million in 2024 (2023: €443 million).
Companies Accounted for under the Equity Method and Other Financial Assets
December 31, 2024
December 31, 2023
E.ON
Group
Associates1
Joint
Ventures1
E.ON
Group
Associates1
Joint
Ventures1
€ in millions
Companies accounted for under the equity method
7,111
2,927
4,184
6,653
2,923
3,730
Equity investments
2,752
834
311
2,561
803
296
Non-current securities
869
–
–
1,177
–
–
Total
10,732
3,761
4,495
10,391
3,726
4,026
1The associates and joint ventures presented as equity investments are associated companies and joint ventures accounted for at cost on materiality grounds.
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E.ON Integrated Annual Report 2024
166
The following table provides an overview of material items in the
aggregated consolidated statements of comprehensive income of the
associates and joint ventures accounted for using the equity method:
The materiality review conducted in the 2024 fiscal year showed that no
single company accounted for under the equity method is in itself
materially significant for the E.ON Group.
Disclosures of company names, registered offices and equity interests as
required by IFRS 12 for material joint arrangements and associates can be
found in the list of shareholdings pursuant to Section 313 (2) HGB (see
Note 12).
As of December 31, 2024, the investment in Enerjisa Enerji A.Ş. remains
marketable. The pro rata market value amounted to €757 million as of
December 31, 2024 (2023: €659 million). The carrying amount is
€757 million as of December 31, 2024. The free float in the company
totals 20 percent, with E.ON and Haci Ömer Sabanci Holding A.Ş. holding
half of the remaining shares; from E.ON’s perspective, Enerjisa Enerji A.Ş. is
therefore a joint venture.
Of investments in companies accounted for under the equity method, the
shareholdings in companies with a carrying amount of €736 million (2023:
€709 million) are restricted because they were pledged as collateral for
financing as of the balance sheet date.
There are no further material restrictions apart from those contained in
standard legal and contractual provisions.
Summarized Financial Information for Associates and Joint Ventures Accounted for under the Equity Method1
Associates
Joint ventures
Total
€ in millions
2024
2023
2024
2023
2024
2023
Proportional share of net income from continuing operations
278
304
-20
174
258
478
Proportional share of other comprehensive income
13
80
673
397
686
477
Proportional share of total comprehensive income
291
384
653
571
944
955
1The review of materiality in the 2024 financial year revealed that none of the equity-accounted companies individually have significant importance for the E.ON Group. As a result, the previous year's
figures were adjusted.
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E.ON Integrated Annual Report 2024
167
(16) Inventories
The following table provides a breakdown of inventories as of
December 31, 2024 and 2023, respectively:
Inventories
€ in millions
December 31,
2024
2023
Raw materials and supplies
820
750
Goods purchased for resale
361
640
Work in progress and finished products
62
550
Total
1,243
1,940
The cost of raw materials, goods purchased for resale and finished
products is primarily determined based on the average cost method.
Write-downs totaled -€18 million in 2024 (2023: -€97 million). Reversals
of write-downs amounted to €91 million in 2024 (2023: €16 million).
The reason for the significantly lower stock of inventories compared to the
previous year is the increased reference to the realization of sales over time
deriving from construction work on third-party land. Whereas in the past,
point-in-time revenue recognition led to the capitalization of work in
progress and finished products in inventories, revenue recognition over
time requires the capitalization of contract assets instead. In addition, the
decline in stored natural gas reserves compared to December 31, 2023 led
to a reduction of inventories.
No inventories have been pledged as collateral.
(17) Receivables and Other Assets
The following table lists receivables and other assets by remaining time to
maturity as of the dates indicated:
As of the reporting date, other financial assets include receivables from
interests in jointly owned power plants of €34 million (2023: €65 million).
Receivables from derivative financial instruments amounted to
€4,275 million at the balance sheet date (2023: €7,985 million). Of this
amount, €2,955 million (2023: €6,709 million) is attributable to forward
commodity contracts. The decrease is primarily due to price developments
on the commodity markets during the course of the year.
Receivables within the scope of IFRS 15 mainly comprise trade receivables.
Value adjustments recognized in profit or loss on receivables within the
scope of IFRS 15 totaled -€0.5 billion in 2024 (2023: -€1.0 billion).
The following table presents the changes in other assets under IFRS 15:
Other Assets
€ in millions
2024
2023
Amortization and impairment
577
251
Balance as of December 31
644
423
The following table shows the opening and closing balances of contractual
assets within the meaning of IFRS 15:
Contract Assets
€ in millions
2024
2023
Balance as of January 1
49
57
Balance as of December 31
578
49
Contract assets have risen sharply since December 31, 2023 (€49 million)
to reach €578 million in total as of December 31, 2024 (see also the
comments in Note 16).
In addition, the E.ON Group had contingent assets in the amount of about
€0.3 billion as of December 31, 2024 (2023: €0.3 billion) due to pending
legal proceedings.
Receivables and Other Assets
€ in millions
December 31, 2024
December 31, 2023
Current
Non-current
Current
Non-current
Receivables from finance leases1
29
213
29
223
Other financial receivables and financial assets
514
894
1,056
856
Financial receivables and other financial assets
543
1,107
1,085
1,079
Trade receivables
9,318
–
10,404
–
Receivables from derivative financial instruments
2,064
2,211
5,364
2,621
Contract assets (IFRS 15)
539
39
34
15
Other assets
152
492
120
303
Other operating assets
3,125
1,431
3,083
911
Trade receivables and other operating assets
15,198
4,173
19,005
3,850
Total
15,741
5,280
20,090
4,929
1See also note 32.
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E.ON Integrated Annual Report 2024
168
(18) Liquid Funds
The following table provides a breakdown of liquid funds by original
maturity as of the dates indicated:
Liquid Funds
€ in millions
December 31,
2024
2023
Securities and fixed-term deposits
1,273
1,375
Current securities with an original maturity
greater than 3 months
1,273
1,375
Restricted liquid funds
255
452
Cash and cash equivalents
5,752
5,585
thereof subject to an only contractual
restriction
6
33
Total
7,280
7,412
Cash and cash equivalents include €5,230 million (2023: €5,096 million)
in cash, checks, cash on hand and balances at financial institutions with an
original maturity of less than three months. Cash and cash equivalents also
include, in particular, money market funds in the amount of €382 million
(2023: €358 million) which meet the definition of cash and cash
equivalents. Cash and cash equivalents in the amount of €6 million (2023:
€33 million) which are subject to an only contractual restriction comprise
mainly advance payments in connection with government intervention
measures.
(19) Capital Stock
The capital stock is subdivided into 2,641,318,800 registered shares with
no par value (no-par-value shares) and amounts to €2,641,318,800 (2023:
€2,641,318,800). The capital stock of the Company was provided by way
of conversion of E.ON AG into a European Company (SE) and through a
capital increase carried out on March 20, 2017, partially using the
Authorized Capital 2012, which expired on May 2, 2017, and through a
capital increase entered in the Commercial Register of the Company on
September 19, 2019, making extensive use of the Authorized Capital
2017.
Pursuant to a resolution by the Annual Shareholders Meeting of
May 16, 2024, the Management Board is authorized to purchase own
shares until May 15, 2029. The shares purchased, combined with other
treasury shares in the possession of the Company, or attributable to the
Company pursuant to Sections 71a et seq. AktG, may at no time exceed
10 percent of its capital stock. The Management Board was authorized at
the aforementioned Annual Shareholders Meeting to cancel any shares
thus acquired without requiring a separate shareholder resolution for the
cancellation or its implementation. The total number of outstanding shares
as of December 31, 2024, was 2,613,077,958 (December 31, 2023:
2,611,658,485). As of December 31, 2024, E.ON SE held a total of
28,240,842 treasury shares (December 31, 2023: 29,660,315) having a
book value of €1,015 million (equivalent to approximately 1.07 percent or
€28,240,842 of the capital stock).
The Management Board has further been authorized by the Annual
Shareholders Meeting of May 16, 2024, also to buy shares using
derivatives (put or call options, or a combination of both). When derivatives
in the form of put or call options, or a combination of both, are used to
acquire shares, the option transactions must be conducted with a credit
institution or investment firm or a company operating in accordance with
Section 53 (1) sentence 1 or Section 53b (1) sentence 1 or (7) of the
German Banking Act (KWG), or with a consortium of such institutions or
firms, or at market terms on the stock exchange. No shares were acquired
in the reporting year using this purchase model.
In the 2024 fiscal year, employees of German E.ON Group companies had
the opportunity to purchase E.ON shares at favorable conditions under a
voluntary employee stock purchase program. The employees received a
grant of €360 on the shares subscribed by them in the period from
September 1 to September 30, 2024. The applicable issue price of the
E.ON share was €11,625. A total of 1,419,473 shares, or 0.05 percent of
the share capital of E.ON SE, were used and issued to employees with a
weighted-average purchase price of €19.59 per share.
No scrip dividend was offered in the 2024 fiscal year.
Authorized Capital
By shareholder resolution adopted at the Annual Shareholders Meeting of
May 16, 2024, the Management Board was authorized, subject to the
Supervisory Board’s approval, to increase until May 15, 2029, the
Company’s capital stock by a total of up to €528,000,000 through one or
more issuances of new registered no-par-value shares against
contributions in cash and/or in kind (authorized capital pursuant to
Sections 202 et seq. AktG, Authorized Capital 2024).
Subject to the Supervisory Board’s approval, the Management Board is
authorized to exclude shareholders’ subscription rights.
The Authorized Capital 2024 was not used.
Conditional Capital
At the Annual Shareholders Meeting of May 16, 2024, shareholders
approved a conditional increase of the capital stock (with the option to
exclude shareholders’ subscription rights) in the amount of up to
€264 million (Conditional Capital 2024).
The conditional capital increase will be used to grant registered no-par-
value shares to the holders of convertible bonds or bonds with warrants,
profit participation rights or income bonds (or combinations of these
instruments), in each case with option rights, conversion rights, option
obligations and/or conversion obligations, which are issued by the
Company or a Group company of the Company as defined by Section 18 of
the German Stock Corporation Act (AktG), under the authorization
approved by the Annual Shareholders Meeting on May 16, 2024, under
agenda item 9, through May 15, 2029. The new shares will be issued at
the conversion or option price to be determined in accordance with the
authorization resolution.
The conditional capital increase is to be implemented only to the extent
that holders of option or conversion rights exercise these rights, or to the
extent that holders of mandatory conversion or option rights fulfill their
obligation to exercise these rights, or to the extent that the Company
exercises its right to grant shares in the Company in whole or in part in lieu
of payment of the cash amount due.
The Conditional Capital 2024 was not used.
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E.ON Integrated Annual Report 2024
169
Voting Rights
The following notices pursuant to Section 33 (1) of the German Securities
Trading Act (“WpHG”) concerning changes in voting rights have been
received:
(20) Additional Paid-in Capital
Additional paid-in capital decreased by €11 million to €13,316 million in
2024 (2023: €13,327 million). The reduction in additional paid-in capital is
attributable to the issuance of employee shares to eligible employees of the
E.ON Group.
(21) Retained Earnings
The following table breaks down the E.ON Group’s retained earnings as of
the dates indicated:
Retained Earnings
December 31,
€ in millions
2024
2023
Legal reserves
45
45
Other retained earnings
4,706
1,446
Total
4,751
1,491
As of December 31, 2024, these IFRS retained earnings totaled
€4,751 million (2023: €1,491 million). The total change of €3,260 million
is primarily due to the positive consolidated net income. In addition,
actuarial income from pensions led to a change in retained earnings. This
was partially offset by E.ON SE’s distribution to shareholders.
Under German securities law, E.ON SE shareholders may receive
distributions from E.ON SE’s income available for distribution in
accordance with the German Commercial Code (German GAAP).
As of December 31, 2024, these German-GAAP retained earnings totaled
€3,309 million (2023: €3,294 million). Of this amount, legal reserves of
€45 million (2023: €45 million) are restricted pursuant to Section 150 (3)
and (4) AktG. The increase in retained earnings is due to the sale of treasury
shares under the employee stock purchase program in 2024. In addition,
amounts of €76.3 million (2023: €102.9 million) are restricted from
distribution under German commercial law as a result of the surplus of plan
assets and the difference between the recognition of provisions for
retirement benefit obligations based on the corresponding average market
interest rate over the past ten fiscal years and the recognition of these
provisions based on the corresponding average market interest rate over
the past seven fiscal years. The dividend-restricted amounts are fully
covered by a sufficient amount of available reserves.
The amount of retained earnings available for distribution is €3,188 million
(2023: €3,146 million).
A proposal to distribute a cash dividend for 2024 of €0.55 per share will be
submitted to the Annual Shareholders Meeting. For 2023, shareholders at
the May 16, 2024, Annual Shareholders Meeting voted to distribute a
dividend of €0.53 for each dividend-paying ordinary share. Based on a
€0.55 dividend, the total profit distribution is €1,437 million (2023:
€1,384 million).
(22) Changes in Other Comprehensive Income
The change in other comprehensive income is primarily the result of
exchange rate differences recognized on the balance sheet, indexation
effects from the application of IAS 29 (hyperinflationary accounting) in
Turkey, effects from cash flow hedges, and the recognition of actuarial
gains and losses.
Information on Stockholders of E.ON SE
Voting rights
Date of notice
Threshold
Achieved, over or under threshold
Gained voting rights on
Allocation
Percentages
Absolute
The Capital Group Companies Inc., Los Angeles, USA1
Dec. 19, 2024
3%
Under
Dec. 18, 2024
indirect
2.94
77,661,948
BlackRock Inc., Wilmington, Delaware, USA
Dec. 10, 2024
5%
Over2
Dec. 5, 2024
indirect
5.403
142,538,0463
RWE Aktiengesellschaft, Essen, Germany4
Dec. 10, 2020
15%
Achieved
Dec. 8, 2020
indirect
15.00
396,197,820
DWS Investment GmbH, Frankfurt am Main, Germany
Aug. 2, 2024
3%
Under
Jul. 30, 2024
indirect
2.98
78,783,238
Canada Pension Plan Investment Board, Toronto,
Canada
Oct. 28, 2024
3%
Under
Oct. 25, 2024
direct/indirect
2.99
78,994,7505
1Name of shareholder holding 3.0 percent or more of voting rights according to the notice received: Capital Research and Management Company.
2Voluntary Group notification with triggered threshold on subsidiary level without specific information about threshold crossing.
3Includes voting rights pursuant to Sec. 34 and instruments pursuant to Sec. 38 (1) Nos. 1 and 2 WpHG.
4Name of shareholder holding 3.0 percent or more of voting rights according to the notice received: GBV Zweiunddreißigste Gesellschaft für Beteiligungsverwaltung mbH.
5Includes voting rights pursuant to Sec. 33 and instruments pursuant to Sec. 38 (1) No. 2 WpHG.
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E.ON Integrated Annual Report 2024
170
The table below illustrates the share of OCI attributable to companies
accounted for under the equity method.
Share of OCI Attributable to Companies Accounted for under the
Equity Method
€ in millions
2024
2023
Balance as of December 31 (before taxes)
274
-412
Taxes
–
–
Balance as of December 31 (after taxes)
274
-412
(23) Non-Controlling Interests
Non-controlling interests by segment as of the dates indicated are shown
in the following table:
Non-Controlling Interests
December 31,
€ in millions
2024
2023
Energy Networks
5,153
4,973
Germany
4,730
4,574
Sweden
–
–
Central Eastern Europe
–
–
South Eastern Europe
423
399
Energy Infrastructure Solutions
22
36
Energy Retail
888
589
Germany
621
351
United Kingdom
–
–
The Netherlands
2
–
Other
265
238
Corporate Functions/Other
262
258
E.ON Group
6,325
5,856
The table below illustrates the share of OCI that is attributable to non-
controlling interests:
Share of OCI Attributable to Non-Controlling Interests
€ in millions
Cash flow
hedges
Available-for-
sale
securities
Currency
translation
adjustments
Remeasure-
ments of
defined
benefit plans
Balance as of January 1, 2023
1
-27
-222
229
Changes
-1
15
12
-139
Balance as of December 31, 2023
–
-11
-210
90
Changes
–
6
-10
22
Balance as of December 31, 2024
–
-5
-220
112
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E.ON Integrated Annual Report 2024
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In compliance with IFRS 12, the following tables include subsidiaries with
significant non-controlling interests and provide an overview of significant
items on the aggregated balance sheet and on the aggregated income
statement, and significant cash flow items. The list of shareholdings
pursuant to Section 313 (2) HGB (see Note 12) contains information on the
registered office of the company and disclosures on equity interests.
There are no major restrictions beyond those under customary corporate or
contractual provisions. The amount of €17 million (2023: €80 million) was
reclassified from non-controlling interests to liabilities in connection with
guaranteed dividends.
Subsidiaries with Material Non-Controlling Interests—Balance Sheet Data as of December 31
rhenag Rheinische Energie AG
envia
Mitteldeutsche Energie AG
E.DIS AG1
Avacon AG1
€ in millions
2024
2023
2024
2023
2024
2023
2024
2023
Non-controlling interests in equity
495
448
1,253
1,156
641
564
569
538
Non-controlling interests in equity (in %)2
54
54
42
42
33
33
39
39
Dividends paid out to non-controlling interests
30
18
70
68
30
30
50
50
Operating cash flow
21
52
-30
135
-20
-11
-67
-44
Non-current assets
489
466
3,708
3,719
1,851
1,826
2,507
2,175
Current assets
258
266
501
710
459
226
234
433
Non-current liabilities
37
36
564
842
7
6
900
729
Current liabilities
126
136
691
823
257
302
152
295
1Holding companies without operational business
2Calculated share ratio.
Subsidiaries with Material Non-Controlling Interests—Earnings Data
rhenag Rheinische Energie AG
envia
Mitteldeutsche Energie AG
E.DIS AG1
Avacon AG1
€ in millions
2024
2023
2024
2023
2024
2023
2024
2023
Share of earnings attributable to non-controlling interests
33
25
137
-17
105
52
81
84
Sales
247
288
392
349
5
4
14
13
Net income/loss
63
40
356
39
320
153
233
239
Comprehensive income
63
40
356
39
319
153
233
239
1Holding companies without operational business.
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E.ON Integrated Annual Report 2024
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(24) Provisions for Pensions and Similar Obligations
The retirement benefit obligations toward the active and former employees
of the E.ON Group, which amounted to €20.9 billion, were covered by plan
assets having a fair value of €16.8 billion as of December 31, 2024. This
corresponds to a funded status of 80 percent.
Provisions for Pensions and Similar Obligations
December 31,
€ in millions
2024
2023
Present value of all defined benefit
obligations
Germany
17,256
17,811
United Kingdom
3,582
3,858
Other countries
40
41
Total
20,878
21,710
Fair value of plan assets
Germany
13,092
13,347
United Kingdom
3,693
3,914
Other countries
9
8
Total
16,794
17,269
Net defined benefit liability/asset (-)
Germany
4,164
4,464
United Kingdom
-111
-56
Other countries
31
33
Total
4,084
4,441
Presented as operating receivables
-1,097
-544
Presented as provisions for pensions and
similar obligations
5,181
4,985
Description of the Benefit Plans
In addition to their entitlements under government retirement systems and
the income from private retirement planning, most active and former E.ON
Group employees are also covered by occupational benefit plans. Both
defined benefit plans and defined contribution plans are in place. Benefits
under defined benefit plans are generally paid upon reaching retirement
age, or in the event of disability or death.
E.ON regularly reviews the pension plans in place within the Group for
financial risks. Typical risk factors for defined benefit plans are longevity
and changes in nominal interest rates, as well as inflation developments
and rising wages and salaries.
The features and risks of defined benefit plans are shaped by the general
legal, tax and regulatory conditions prevailing in the respective country.
The configurations of the major defined benefit and defined contribution
plans within the E.ON Group are described in the following discussion.
Germany
Active employees at the German Group companies are covered by both
cash balance plans and pension plans based on final salary. Pension plans
based on final salary are closed to new hires. All new hires will receive cash
balance plans in accordance with a capital or pension module system,
which, depending on the pension plan, can provide for alternative payout
options of a prorated single payment and payments of installments in
addition to the payment of a regular pension. The cash balance plans used
different interest rules until December 31, 2021. Depending on the
underlying pension plan, either interest rates adjusted to market
developments with a fixed lower limit or guaranteed interest rates were
used to determine the capital or pension modules. The majority of pension
commitments still with a fixed guaranteed interest rate were modified as of
January 1, 2022, in that the pension modules acquired from January 1,
2022, onwards now also bear interest at a rate adjusted to market
developments and protected by a fixed lower limit. The benefit expense for
the cash balance plans is determined at different percentage rates based
on the ratio between compensation and the contribution limit in the
statutory retirement pension system in Germany. Employees can
additionally choose to defer compensation.
Future pension adjustments are either guaranteed at 1 percent per annum
or largely track the development of the inflation rate, usually in a three-
year cycle.
To fund the pension plans for the German Group companies, plan assets
were established. The major part of these plan assets is administered in the
form of Contractual Trust Arrangements (“CTAs”) in accordance with
specified investment principles. There are additional plan assets available
through the implementation channels of the pension fund
(“Pensionsfonds”) and smaller German pension vehicles (“Pensions- und
Unterstützungskassen”). Only the pension fund and the “Pensionskassen”
vehicles are subject to regulatory provisions in relation to the investment of
capital and funding requirements.
United Kingdom
In the United Kingdom, there are various pension plans. In the past,
employees were covered by defined benefit plans, which for the most part
were final-pay plans and make up the majority of the pension obligations
currently reported for the United Kingdom. Benefit payments to the
beneficiaries are adjusted for inflation on a limited basis. These pension
plans were closed to new hires. Since then, new hires are offered a defined
contribution plan. Aside from the payment of contributions, this plan
entails no additional risks for the employer.
Plan assets in the United Kingdom are administered by trustees in
independent special-purpose vehicles, most of which are a separate section
of the Electricity Supply Pension Scheme (ESPS). The trustees are selected
by the members of the plan or appointed by the entity. In that capacity, the
trustees are particularly responsible for the investment of the plan assets.
The Pensions Regulator in the United Kingdom requires that a so-called
“technical valuation” of the plan’s funding status be performed every three
years. The actuarial assumptions underlying the valuation are agreed upon
by the trustees and E.ON UK plc. They include presumed life expectancy,
wage and salary growth rates, investment returns, inflationary
assumptions and interest rate levels. The most recent technical valuation
of the financing status of the “E.ON UK Section” was completed as of the
reporting date of March 31, 2024, and no technical funding deficit was
identified. The “Npower Section” was merged into the “E.ON UK Section”
as of March 31, 2024. The “Npower Section” is already included in the
valuation result of the financing status of the “E.ON UK Section”.
Other Countries
The remaining pension obligations are divided between the Netherlands,
Luxembourg, Sweden, Italy, Poland, Romania, the Czech Republic and the
USA.
The defined benefit plan in the Netherlands consists of commitments made
by various employers within the framework of a sector-specific fund and
does not permit a pro rata allocation of the obligations, plan assets and
service cost. The E.ON Group accordingly accounts for this obligation as a
defined contribution plan. There are no minimum funding requirements in
this respect. Benefits may be reduced or contributions increased if there is
insufficient funding.
From the perspective of the Group, however, the benefit plans are
relatively insignificant in the above-mentioned countries.
Description of the Benefit Obligations
The following table shows the changes in the present value of the defined
benefit obligations for the periods indicated:
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The actuarial gains shown in the table for the development of the present
value of the defined benefit obligations are primarily attributable to an
increase in the discount rates used.
The present value is attributable to retirees and their beneficiaries in the
amount of €13.4 billion (2023: €13.5 billion), to former employees with
vested entitlements in the amount of €2.5 billion (2023: €2.8 billion) and
to active employees in the amount of €5 billion (2023: €5.4 billion).
Changes in the Defined Benefit Obligations
2024
2023
€ in millions
Total
Germany
United
Kingdom
Other
countries
Total
Germany
United
Kingdom
Other
countries
Defined benefit obligations as of January 1
21,710
17,811
3,858
41
19,897
16,028
3,832
37
Employer service cost for benefits earned during the year
215
201
12
2
164
151
11
2
Past service cost
-28
-28
–
–
16
20
-4
–
Gains (-) and losses (+) on settlements
–
–
–
–
1
–
1
–
Interest cost on the present value of the defined benefit obligations
736
556
178
2
778
582
194
2
Remeasurements
-818
-429
-388
-1
1,856
1,862
-12
6
Actuarial gains (-)/losses (+) arising from changes in demographic assumptions
-19
–
-19
–
-104
–
-104
–
Actuarial gains (-)/losses (+) arising from changes in financial assumptions
-947
-573
-373
-1
1,518
1,451
63
4
Actuarial gains (-)/losses (+) arising from experience adjustments
148
144
4
–
442
411
29
2
Employee contributions
4
3
1
–
3
2
1
–
Benefit payments
-1,128
-872
-254
-2
-1,101
-853
-244
-4
Changes in scope of consolidation
–
–
–
–
20
21
–
-1
Exchange rate differences
175
–
175
–
79
–
79
–
Other
12
14
–
-2
-3
-2
–
-1
Defined benefit obligations as of December 31
20,878
17,256
3,582
40
21,710
17,811
3,858
41
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174
The actuarial assumptions used to measure the defined benefit obligations
and to compute the net periodic pension cost at E.ON’s German and UK
subsidiaries as of the respective balance sheet date are as follows:
Actuarial Assumptions
December 31,
Percentages
2024
2023
2022
Discount rate1
Germany
3.41
3.16
3.71
United Kingdom
5.45
4.50
4.80
Wage and salary growth
rate
Germany
2.95
2.95
2.75
United Kingdom2
2.20/2.70
2.10/2.50
2.20/2.70
Pension increase rate
Germany3
2.20
2.20
2.00
United Kingdom
3.00
2.90
3.10
1The discount rates used to determine service cost were 3.12 percent (2023: 3.59 percent) in
Germany and 4.53 percent (2023: 4.78 percent) in the UK.
2Different salary growth rates due to different benefit plans (E.ON: 2.20 percent (2023: 2.10
percent); Npower: 2.70 percent (2023: 2.50 percent)).
3The pension increase rate for Germany applies to eligible individuals not subject to an agreed
guarantee adjustment.
The IAS 19 discount rates for the EUR and GBP currency areas are
determined on the basis of the single equivalent discount rate method. The
full yield curve is used to determine the present value of the defined benefit
obligations, and the IAS 19 discount rate disclosed is determined
retrospectively as the discount rate that leads to the identical present value
of the defined benefit obligations when applied uniformly. The yield curve
“RATE:Link” from provider WTW is used to determine the present value.
To measure the E.ON Group’s occupational pension obligations for
accounting purposes, the Company has employed the current versions of
the biometric tables recognized in each respective country for the
calculation of pension obligations:
Changes in the actuarial assumptions described previously would lead to
the following changes in the present value of the defined benefit
obligations:
The sensitivities indicated are computed based on the same methods and
assumptions used to determine the present value of the defined benefit
obligations. If one of the actuarial assumptions is changed for the purpose
of computing the sensitivity of results to changes in that assumption, all
other actuarial assumptions are included in the computation unchanged.
When considering sensitivities, it must be noted that the change in the
present value of the defined benefit obligations resulting from changing
multiple actuarial assumptions simultaneously is not necessarily equivalent
to the cumulative effect of the individual sensitivities.
Actuarial Assumptions (Mortality Tables)
Germany
2018 G versions of the Heubeck biometric tables
(2018)
United Kingdom
“S4” series base mortality tables with the CMI 2023
projection model for future improvements
Sensitivities
Change in the present value of the defined benefit obligations
December 31, 2024
December 31, 2023
Change in the discount rate by (basis points)
+ 50
-50
+ 50
-50
Change in percent
-5.93
6.62
-6.30
7.09
Change in the wage and salary growth rate by (basis points)
+ 25
-25
+ 25
-25
Change in percent
0.23
-0.22
0.26
-0.25
Change in the pension increase rate by (basis points)
+ 25
-25
+ 25
-25
Change in percent
1.79
-1.72
1.88
-1.77
Change in mortality by (percent)
+ 10
-10
+ 10
-10
Change in percent
-2.03
2.27
-2.11
2.36
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175
Description of Plan Assets and the Investment Policy
The defined benefit plans are funded by plan assets held in specially
created pension vehicles that legally are distinct from the Company. The
fair value of these plan assets changed as follows:
The plan assets include virtually no owner-occupied real estate or equity
and debt instruments issued by E.ON Group companies. Each of the
individual plan asset components has been allocated to an asset class
based on its substance.
Changes in the Fair Value of Plan Assets
2024
2023
€ in millions
Total
Germany
United
Kingdom
Other
countries
Total
Germany
United
Kingdom
Other
countries
Fair value of plan assets as of January 1
17,269
13,347
3,914
8
16,787
12,863
3,915
9
Interest income on plan assets
598
414
184
–
664
465
199
–
Remeasurements
-370
-19
-352
1
429
491
-62
–
Return on plan assets recognized in equity, not including amounts contained in the interest income on plan
assets
-370
-19
-352
1
429
491
-62
–
Employee contributions
4
3
1
–
3
2
1
–
Employer contributions
175
154
21
–
339
314
25
–
Benefit payments
-1,061
-807
-254
–
-1,041
-796
-244
-1
Changes in scope of consolidation
–
–
–
–
6
6
–
–
Exchange rate differences
179
–
179
–
81
–
81
–
Other
–
–
–
–
1
2
-1
–
Fair value of plan assets as of December 31
16,794
13,092
3,693
9
17,269
13,347
3,914
8
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E.ON Integrated Annual Report 2024
176
The plan assets thus classified break down as shown in the following table:
The fundamental investment objective for the plan assets is to provide full
coverage of benefit obligations at all times for the payments due under the
corresponding benefit plans. This investment policy stems from the
corresponding governance guidelines of the Group. An increase in the net
defined benefit liability or a deterioration in the funded status following an
unfavorable development in plan assets or in the present value of the
defined benefit obligations is identified in these guidelines as a risk. E.ON
therefore regularly reviews the development of the funded status in order
to monitor this risk.
To implement the investment objective, the E.ON Group primarily pursues
an investment approach that takes into account the structure of the benefit
obligations. This long-term investment strategy seeks to manage the
funded status, with the result that any changes in the defined benefit
obligations, especially those caused by fluctuating inflation and interest
rates are, to a certain degree, offset by simultaneous corresponding
changes in the fair value of plan assets. The investment strategy may also
involve the use of derivatives (for example, interest rate swaps and
inflation swaps, as well as currency hedging instruments) to facilitate the
control of specific risk factors of pension liabilities. In the table above,
derivatives have been allocated, based on their substance, to the respective
asset classes.
In order to improve the funded status of the E.ON Group as a whole, a
portion of the plan assets will also be invested in a diversified portfolio of
asset classes that are expected to provide for long-term returns in excess
of those of fixed-income investments and the discount rate.
The determination of the target portfolio structure for the individual plan
assets is based on regular asset-liability studies. In these studies, the target
portfolio structure is reviewed in a comprehensive approach against the
backdrop of existing investment principles, the current funded status, the
condition of the capital markets and the structure of the benefit
obligations, and is adjusted as necessary. The parameters used in the
studies are additionally reviewed regularly. Asset managers are tasked
with implementing the target portfolio structure. They are monitored for
target achievement on a regular basis.
Classification of Plan Assets
December 31, 2024
December 31, 2023
Percentages
Total
Germany
United
Kingdom
Other
countries
Total
Germany
United
Kingdom
Other
countries
Plan assets listed in an active market
Equity securities (stocks)
20
23
10
–
18
21
8
–
Debt securities
47
44
57
–
45
43
52
–
thereof Government bonds
32
26
52
–
28
22
47
–
thereof Corporate bonds
15
18
5
–
17
21
5
–
Other investment funds
6
–
25
–
7
–
30
–
Total listed plan assets
73
67
92
–
70
64
90
–
Plan assets not listed in an active market
Equity securities not traded on an exchange
6
6
6
–
6
6
6
–
Debt securities
–
–
–
–
1
1
–
–
Real estate
9
12
–
–
11
14
–
–
Qualifying insurance policies
2
2
1
100
2
2
1
100
Cash and cash equivalents
1
1
1
–
3
3
1
–
Other
9
12
–
–
7
10
2
–
Total unlisted plan assets
27
33
8
100
30
36
10
100
Total
100
100
100
100
100
100
100
100
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E.ON Integrated Annual Report 2024
177
Description of the Pension Cost
The net periodic pension cost for defined benefit plans included in the
provisions for pensions and similar obligations and in operating receivables
is shown in the table below:
In addition to the total net periodic pension cost for defined benefit plans,
an amount of €122 million in contributions to external insurers or similar
institutions was paid in 2024 (2023: €104 million) for defined contribution
plans.
Contributions to state plans totaled €0.4 billion (2023: €0.4 billion).
Description of Contributions and Benefit Payments
Prospective benefit payments under the defined benefit plans existing as of
December 31, 2024, for the next ten years are shown in the following
table:
Prospective Benefit Payments
€ in millions
Total
Germany
United
Kingdom
Other
countries
2025
1,162
922
237
3
2026
1,156
915
238
3
2027
1,171
929
239
3
2028
1,175
933
239
3
2029
1,182
942
237
3
2030–2034
5,938
4,746
1,166
26
Total
11,784
9,387
2,356
41
For the following fiscal year, it is expected that employer contributions to
plan assets will amount to a total of €181 million.
The weighted-average duration of the defined benefit obligations
measured within the E.ON Group was 12.7 years as of December 31, 2024
(2023: 13.5 years).
Net Periodic Pension Cost
2024
2023
€ in millions
Total
Germany
United
Kingdom
Other
countries
Total
Germany
United
Kingdom
Other
countries
Employer service cost for benefits earned during the year
215
201
12
2
164
151
11
2
Past service cost
-28
-28
–
–
16
20
-4
–
Gains (-) and losses (+) on settlements
–
–
–
–
1
–
1
–
Net interest cost (+)/interest income (-) on the net defined benefit liability/asset
138
142
-6
2
114
117
-5
2
Total
325
315
6
4
295
288
3
4
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Description of the Net Defined Benefit Liability
The recognized net liability from the E.ON Group’s defined benefit plans
results from the difference between the present value of the defined
benefit obligations and the fair value of plan assets:
Changes in the Net Defined Benefit Liability
2024
2023
€ in millions
Total
Germany
United
Kingdom
Other
countries
Total
Germany
United
Kingdom
Other
countries
Net liability as of January 1
4,441
4,464
-56
33
3,110
3,165
-83
28
Net periodic pension cost
325
315
6
4
295
288
3
4
Changes from remeasurements
-448
-410
-36
-2
1,427
1,371
50
6
Employer contributions to plan assets
-175
-154
-21
–
-339
-314
-25
–
Net benefit payments
-67
-65
–
-2
-60
-57
–
-3
Changes in scope of consolidation
–
–
–
–
14
15
–
-1
Exchange rate differences
-4
–
-4
–
-2
–
-2
–
Other
12
14
–
-2
-4
-4
1
-1
Net liability as of December 31
4,084
4,164
-111
31
4,441
4,464
-56
33
thereof net liability
5,181
5,117
31
33
4,985
4,917
33
35
thereof net asset
-1,097
-953
-142
-2
-544
-453
-89
-2
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179
(25) Miscellaneous Provisions
The following table lists the miscellaneous provisions as of the dates
indicated:
The changes in the miscellaneous provisions are shown in the table below:
The accretion expense resulting from the changes in provisions is shown in
the financial result (see Note 9). The provision items are discounted in
accordance with the maturities with interest rates of between 1.9 and
7.3 percent.
As per the previous year, as of December 31, 2024, provisions for nuclear-
waste management obligations exclusively relate to Germany; other
provisions mainly relate to eurozone countries and the United Kingdom.
Miscellaneous Provisions
December 31, 2024
December 31, 2023
€ in millions
Current
Non-current
Current
Non-current
Nuclear-waste management obligations
684
5,219
713
5,840
Personnel obligations
425
741
465
796
Obligations from green certificates
860
30
812
43
Other asset retirement obligations
64
708
109
713
Supplier-related and customer-related obligations
930
119
976
167
Environmental remediation and similar obligations
47
296
79
323
Other
1,282
1,179
1,712
1,146
Total
4,292
8,292
4,866
9,028
Changes in Miscellaneous Provisions
€ in millions
January 1,
2024
Exchange rate
differences
Changes in
scope of
consolidation
Unwinding of
discounts
Additions
Utilization
Reclassifi-
cations
Reversals
Changes in
estimates
December 31,
2024
Nuclear-waste management obligations
6,553
–
–
136
–
-686
–
–
-100
5,903
Personnel obligations
1,261
1
–
23
435
-411
-35
-108
–
1,166
Obligations from green certificates
855
41
–
1
1,352
-1,342
–
-17
–
890
Other asset retirement obligations
822
–
–
14
16
-31
4
-12
-41
772
Supplier-related and customer-related obligations
1,143
3
1
4
371
-290
2
-185
–
1,049
Environmental remediation and similar obligations
402
-1
–
–
21
-39
–
-40
–
343
Other
2,858
9
-7
59
803
-816
-31
-414
–
2,461
Total
13,894
53
-6
237
2,998
-3,615
-60
-776
-141
12,584
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Provisions for Nuclear-Waste Management Obligations
The provisions for nuclear-waste management obligations as of
December 31, 2024, in the amount of €5.9 billion exclusively relate to
nuclear power activities in Germany.
The provisions for nuclear waste management based on nuclear power
legislation comprise all those nuclear obligations relating to the disposal of
spent nuclear-fuel rods and low-level nuclear waste and to the retirement
and decommissioning of nuclear power plant components that are
determined on the basis of external studies, external and internal cost
estimates and contractual agreements, as well as the supplementary
provisions of the German Act Transferring Responsibility for Nuclear
Waste Storage and the German Disposal Fund Act.
The asset retirement obligations recognized include the anticipated costs
of post- and residual operation of the facility, dismantling costs, and the
cost of removal and disposal of the nuclear components of the nuclear
power plant.
Provisions for the disposal of spent nuclear fuel rods also comprise the
contractual costs of the return of waste from reprocessing in France and
England to interim storage, as well as costs incurred for expert handling,
including the necessary interim storage containers and transport to interim
storage.
The cost estimates used to determine the provision amounts are based on
studies and analyses performed by external specialists and are updated
annually, provided that the cost estimates are not based on contractual
agreements.
In the following, the provision items after deduction of advance payments
are classified based on technical criteria:
Nuclear Waste Management Obligations in Germany (Less
Advance Payments)
December 31,
€ in millions
2024
2023
Retirement and decomissioning
5,605
6,167
Containers, transports, other
298
386
Total
5,903
6,553
Provisions, if they are non-current, are measured at their settlement
amounts, discounted to the balance sheet date.
A risk-free discount rate of an average of about 2.3 percent is used for the
measurement of E.ON’s disposal obligations (previous year: about
2.0 percent). As in the prior year, E.ON assumes a 2 percent increase in
costs when estimating annual payments. A change in the discount rate or
in the cost increase rate of 0.1 percentage points would change the
amount of the provision recognized on the balance sheet by approximately
€40 million.
Excluding the effects of discounting and cost increases, the amounts for
disposal obligations would be €5,979 million with average credit terms of
approximately five years.
There were changes in estimates for the nuclear power business in 2024 in
the amount of -€100 million (2023: €266 million). This mainly includes the
discounting effect in the amount of about -€93 million resulting from the
increase in interest rates. Increases from cost adjustments were largely
offset by countervailing effects from the optimization of decommissioning
and disposal services in the amount of around €114 million. €686 million
(2023: €686 million) of this was used, of which €616 million (2023:
€592 million) related to decommissioning nuclear power plants based on
circumstances for which decommissioning and dismantling costs were
capitalized.
Personnel Obligations
Provisions for personnel costs primarily cover provisions for early
retirement benefits, performance-based compensation components,
restructuring and other deferred personnel costs. Restructuring provisions,
which totaled €597 million at December 31, 2024 (2023: €641 million),
were made especially in Germany for various restructuring projects.
Obligations from Green Certificates
Renewables Obligation Certificates (ROCs or Green Certificates) are an
important mechanism for promoting renewable energies, especially in the
UK. The ROCs represent a fixed share of Renewables in power sales and
can be acquired either from renewable sources or on the market. During a
12-month ROC period, the obligations recognized as a provision for this
purpose are offset against the acquired certificates and used.
Provisions for Other Asset Retirement Obligations
The provisions for other asset retirement obligations consist of obligations
for renewable energy power plants and infrastructure. In addition, the
provisions for dismantling conventional plant components in the nuclear
power segment, which are based on legally binding civil law agreements
and public requirements in the amount of €360 million (2023:
€375 million) are taken into account here. The change in this item is mainly
due to the increase in interest rates. Excluding discounting and cost-
increase effects, the amount for these disposal obligations with an average
payment term of about 13 years would be €379 million.
The other asset retirement obligations disclosed under economic net debt,
not including the provisions for dismantling conventional plant
components in the nuclear power segment, amount to €412 million (2023:
€447 million).
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181
Sales and Supplier-Related Obligations
Provisions for supplier-related obligations consist of provisions for
potential losses on open purchase contracts.
Provisions for sales market-oriented obligations include provisions for price
reductions, discounts and rebates in the amount of €554 million (2023:
€557 million).
Environmental Remediation and Similar Obligations
Provisions for environmental remediation refer primarily to redevelopment
protection measures and the rehabilitation of contaminated sites.
Other
The other miscellaneous provisions consist of obligations for a possible
insolvency payment in the amount of €140 million (2023: €120 million),
litigation cost risks in the amount of €99 million (2023: €114 million),
emissions allowanes of €73 million (2023: €108 million), possible
obligations from tax-related interest expense in the amount of €46 million
(2023: €58 million) and miscellaneous taxes in the amount of €46 million
(2023: €65 million).
(26) Liabilities
The following table provides a breakdown of liabilities:
Liabilities
December 31, 2024
December 31, 2023
€ in millions
Current
Non-current
Current
Non-current
Financial liabilities
4,964
34,100
4,617
30,823
Trade payables
10,870
–
11,580
–
Capital expenditure grants
617
538
395
357
Liabilities from derivatives
1,962
2,108
8,727
3,713
Advance payments
280
21
358
33
Contract liabilities (IFRS 15)
687
3,904
699
3,693
Other operating liabilities
5,290
580
5,638
520
Trade payables and other operating liabilities
19,706
7,151
27,397
8,316
Total
24,670
41,251
32,014
39,139
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
182
Financial Liabilities
The following tables present the changes to financial liabilities in fiscal
years 2024 and 2023:
Liabilities to financial institutions include, among other items, collateral
received, measured at a fair value of €81 million (2023: €27 million). This
collateral relates to amounts pledged by banks to limit the utilization of
credit lines in connection with the fair value measurement of derivative
transactions. The other financial liabilities include, inter alia, financial
guarantees totaling €8 million (2023: €8 million). Also included is collateral
received in connection with goods and services in the amount of
€13 million (2023: €17 million). E.ON can use this collateral without
restriction.
The financial liabilities of innogy recognized at the date of initial
consolidation were marked to market under IFRS. This market value was
considerably higher than the nominal value because market interest rates
had fallen since the bonds were issued. The difference between the
nominal value and the market value calculated during the purchase price
allocation totaled €1,388 million as of December 31, 2024 (as of
December 31, 2023: €1,496 million) and will be reversed over the term of
each bond and recognized as an expense in the financial result (see Note 9).
This difference is not taken into account in the economic net debt.
Financial Liabilities
Cash-
effective
Non-cash-effective
€ in millions
Jan. 1, 2024
Cash flows
Exchange rate
differences
Changes in
scope of
consolidation
Compounding
effect
Other Dec. 31, 2024
Bonds
29,426
2,935
154
–
19
-148
32,386
Commercial paper
214
6
–
–
–
–
220
Bank loans/liabilities to banks
1,671
418
-35
–
–
-163
1,891
Lease obligations1
2,874
-377
-1
2
–
693
3,191
Other financial liabilities
1,255
19
-2
38
–
66
1,376
Financial liabilities
35,440
3,001
116
40
19
448
39,064
1For more information see Note 32.
Financial Liabilities
Cash-
effective
Non-cash-effective
€ in millions
Jan. 1, 2023
Cash flows
Exchange rate
differences
Changes in
scope of
consolidation
Compounding
effect
Other Dec. 31, 2023
Bonds
28,897
641
53
–
22
-187
29,426
Commercial paper
767
-553
–
–
–
–
214
Bank loans/liabilities to banks
921
643
-4
109
–
2
1,671
Lease obligations1
2,512
-383
8
–
–
737
2,874
Other financial liabilities
1,054
-594
2
8
–
785
1,255
Financial liabilities
34,151
-246
59
117
22
1,337
35,440
1For more information see Note 32.
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
183
The following is a description of the E.ON Group’s significant credit
arrangements and debt issuance programs.
€35 Billion Debt Issuance Program
A Debt Issuance Program simplifies the flexible issuance of debt
instruments through public and private placements to investors. The Debt
Issuance Program of E.ON SE was most recently renewed in March 2024,
with a total amount of €35 billion. E.ON SE plans to renew the program
and re-admit E.ON International Finance B.V. as a possible issuer in 2025.
At year-end 2024, the following E.ON SE and E.ON International Finance
B.V. bonds were outstanding:
Major Bond Issues of E.ON SE and E.ON International Finance B.V.1
Issuer
Volume in the respective
currency
Initial term
Repayment
Coupon
E.ON SE
EUR 750 million
2,8 years
Jan 2025
0.875%
E.ON International Finance B.V.
EUR 750 million
8 years
Apr 2025
1.000%
E.ON SE
EUR 750 million
5.5 years
Oct 2025
1.000%
E.ON SE
EUR 500 million
4 years
Jan 2026
0.125%
E.ON International Finance B.V.
EUR 500 million
8 years
May 2026
1.625%
E.ON SE
EUR 750 million
7 years
Oct 2026
0.250%
E.ON SE
EUR 1,000 million
7.7 years
Sep 2027
0.375%
E.ON International Finance B.V.
EUR 850 million
10 years
Oct 2027
1.250%
E.ON SE
EUR 800 million
5 years
Jan 2028
3.500%
E.ON SE
EUR 500 million
7.8 years
Feb 2028
0.750%
E.ON SE
EUR 600 million
6 years
Aug 2028
2.875%
E.ON SE
EUR 600 million
7.9 years
Dec 2028
0.100%
E.ON SE
EUR 750 million
5.5 years
Mar 2029
3.750%
E.ON SE
EUR 750 million
12 years
May 2029
1.625%
E.ON International Finance B.V.
EUR 1,000 million
11.5 years
Jul 2029
1.500%
E.ON SE
EUR 750 million
10.5 years
Feb 2030
0.350%
E.ON SE
EUR 750 million
5.5 years
Mar 2030
3.125%
E.ON International Finance B.V.
GBP 760 million
28.1 years
Jun 2030
6.250%
E.ON SE
EUR 500 million
10.9 years
Dec 2030
0.750%
1Listing: All bonds ≥ EUR 500 million are listed in Luxembourg with the exception of the Rule 144A/Regulation S USD bond, which is unlisted.
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
184
Additionally outstanding as of December 31, 2024, were private
placements with a total volume of approximately €1.7 billion (2023:
€1.4 billion). As of December 31, 2024, there were bilateral credit facilities
in the amount of €1.0 billion (2023: €2.3 billion), with original maturities of
up to 1.5 years. These facilities were agreed with a share of E.ON’s core
banking group and were not drawn on during the reporting year.
€3.5 Billion Syndicated Revolving Credit Facility
Effective October 24, 2019, E.ON arranged a syndicated revolving credit
facility in the amount of €3.5 billion over an original term of five years, with
two extension options for one year each. Taking into account the two
already exercised options, the credit line will mature on October 24, 2026.
The credit margin is linked, among other things, to the development of
certain ESG ratings, which gives E.ON financial incentives to pursue a
sustainable corporate strategy. The ESG ratings are set by three prominent
agencies: ISS ESG, MSCI ESG Research, and Sustainalytics. The facility
serves as the Group’s reliable, long-term liquidity reserve, one purpose of
which is to function as a backup facility for the commercial paper
programs. The facility was granted by 21 banks, which make up E.ON’s
core banking group. The facility has not been drawn in the reporting year.
€10 Billion and $10 Billion Commercial Paper Programs
The euro commercial paper program in the amount of €10 billion allows
E.ON SE to issue from time to time commercial paper with maturities of up
to two years less one day to investors. The US commercial paper program
in the amount of $10 billion allows E.ON SE to issue from time to time
commercial paper with maturities of up to 366 days to investors. As of
December 31, 2024, €0 million was outstanding under the euro
commercial paper program (2023: €44 million) and the equivalent of
€221 million (prior year: €170 million) under the US commercial paper
program.
Major Bond Issues of E.ON SE and E.ON International Finance B.V.1
Issuer
Volume in the respective
currency
Initial term
Repayment
Coupon
E.ON SE
EUR 750 million
7 years
Jan 2031
3.375%
E.ON SE
EUR 750 million
9 years
Mar 2031
1.625%
E.ON SE
EUR 500 million
11.3 years
Aug 2031
0.875%
E.ON SE
EUR 500 million
12 years
Nov 2031
0.625%
E.ON SE
EUR 800 million
8 years
Mar 2032
3.500%
E.ON International Finance B.V.2
GBP 975 million
30 years
Jun 2032
6.375%
E.ON SE
EUR 750 million
11.5 years
Oct 2032
0.600%
E.ON International Finance B.V.
EUR 600 million
30 years
Feb 2033
5.750%
E.ON SE
EUR 750 million
10 years
Aug 2033
4.000%
E.ON International Finance B.V.
GBP 600 million
22 years
Jan 2034
4.750%
E.ON SE
EUR 800 million
12.8 years
Oct 2034
0.875%
E.ON SE
EUR 1,000 million
12 years
Jan 2035
3.875%
E.ON SE
EUR 750 million
12 years
Jan 2036
3.750%
E.ON International Finance B.V.
GBP 900 million
30 years
Oct 2037
5.875%
E.ON International Finance B.V.3
USD 1,000 million
30 years
Apr 2038
6.650%
E.ON SE
EUR 500 million
14 years
Sep 2038
3.875%
E.ON International Finance B.V.
GBP 700 million
30 years
Jan 2039
6.750%
E.ON International Finance B.V.
GBP 1,000 million
30 years
Jul 2039
6.125%
E.ON SE
EUR 1,000 million
20 years
Mar 2044
4.125%
1Listing: All bonds ≥ EUR 500 million are listed in Luxembourg with the exception of the Rule 144A/Regulation S USD bond, which is unlisted.
2The volume of this issue was raised from originally GBP 850 million to GBP 975 million.
3Rule 144A/Regulation S bond.
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
185
The bonds issued by E.ON SE and E.ON International Finance B.V.
(guaranteed by E.ON SE) have the maturities presented in the table below.
Liabilities denominated in foreign currency include the effects of economic
hedges, and the amounts shown here may therefore vary from the
amounts presented on the balance sheet
Financial Liabilities by Segment
The following table breaks down the financial liabilities by segment:
Financial Liabilities by Segment as of December 311
Bonds
Commercial paper Bank loans/Liabilities to banks
Lease obligations
Other financial liabilities
Financial liabilities
€ in millions
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Energy Networks
–
–
–
–
1,109
905
2,664
2,385
813
693
4,586
3,983
Germany
–
–
–
–
571
454
2,560
2,285
811
692
3,942
3,431
Sweden
–
–
–
–
–
–
15
15
–
1
15
16
Central Eastern Europe
–
–
–
–
–
–
76
71
2
1
78
72
South Eastern Europe
–
–
–
–
538
451
13
14
-1
-1
550
464
Consolidation
–
–
–
–
–
–
–
–
1
–
1
–
Energy Infrastructure Solutions
–
–
–
–
9
12
145
118
48
44
202
174
Energy Retail
–
–
–
–
693
725
279
261
261
179
1,233
1,165
Germany
–
–
–
–
80
76
21
21
37
25
138
122
United Kingdom
–
–
–
–
-4
-4
28
33
1
2
25
31
The Netherlands
–
–
–
–
1
1
90
80
4
34
95
115
Other
–
–
–
–
616
651
140
126
219
120
975
897
Consolidation
–
–
–
–
–
1
–
1
–
-2
–
–
Corporate Functions/Other
32,386
29,426
220
214
80
29
103
110
254
339
33,043
30,118
E.ON Group
32,386
29,426
220
214
1,891
1,671
3,191
2,874
1,376
1,255
39,064
35,440
1Because of changes in segment reporting, the prior-year figure was adjusted accordingly.
Bonds Issued by E.ON SE and E.ON International Finance B.V.
€ in millions
Total
2024
2025
2026
Due between
2027 and
2033
Due after
2033
December 31, 2024
30,920
–
2,408
1,750
16,690
10,072
December 31, 2023
28,461
2,139
2,408
1,750
14,678
7,485
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E.ON Integrated Annual Report 2024
186
Trade Payables and Other Operating Liabilities
Trade payables totaled €10,870 million as of December 31, 2024 (2023:
€11,580 million).
Capital expenditure grants of €1,155 million (2023: €752 million) have not
yet been recognized as revenue. As in the prior year, the majority of these
were government grants, in particular for the Energy Networks business.
The E.ON Group retains ownership of the assets. The grants are non-
refundable and are recognized in other operating income over the period of
the depreciable lives of the related assets.
Derivative liabilities totaled €4,069 million as of December 31, 2024
(2023: €12,440 million). Of this amount, €2,645 million (2023:
€10,832 million) is attributable to forward commodity contracts. The
change compared with the previous year is mainly due to the market
valuation of commodity derivatives.
Contract liabilities under IFRS 15 in the amount of €4,591 million (2023:
€4,392 million) consist primarily of construction grants that were paid by
customers for the cost of new gas and electricity connections in
accordance with the generally binding terms governing such new
connections. These grants are customary in the industry, are usually non-
refundable, and are generally reversed and recognized as revenue over the
regulatory period in question. This effect increased revenue by
€319 million in 2024 (2023: €314 million).
Other operating liabilities consist primarily of other tax liabilities in the
amount of €860 million (2023: €950 million) and interest payable in the
amount of €562 million (2023: €441 million). This item also includes other
liabilities to our customers from overpayments and refund claims of
€1,676 million (2023: €1,765 million) and current personnel liabilities of
€523 million (2023: €503 million). Also included in other operating
liabilities are carryforwards of counterparty obligations to acquire
additional shares in already consolidated subsidiaries as well as non-
controlling interests in fully consolidated partnerships with legal structures
that give their shareholders a statutory right of withdrawal combined with
a compensation claim, in the amount of €314 million (2023: €563 million).
(27) Contingent Liabilities and Other Financial Obligations
As part of its business activities, E.ON is subject to contingent liabilities and
other financial obligations involving a variety of underlying matters. These
primarily include guarantees, obligations from litigation and claims (as
discussed in more detail in Note 28), short- and long-term contractual,
legal and other obligations and commitments.
Contingent Liabilities
The contingent liabilities of the E.ON Group amounted to €0.3 billion as of
December 31, 2024 (December 31, 2023: €0.3 billion) and primarily
include contingent liabilities in connection with potential long-term
environmental remediation measures and legal disputes. This value
represents the best estimate of the expenditure required to settle the
present obligation as of the reporting date.
E.ON has also issued direct and indirect guarantees and surety bonds to
third parties in connection with its own operations or the operations of
affiliated companies, which may trigger payment obligations based on the
occurrence of certain events. These instruments include both financial
guarantees as well as operational guarantees, which primarily secure
contractual obligations as well as benefit obligations for active and former
employees.
In addition, E.ON has entered into indemnification agreements, which as a
rule are incorporated in agreements concerning the disposal of
shareholdings and, above all, affect the customary representations and
warranties with relation to liability risks for environmental damage and
contingent tax risks. In some cases, obligations are covered in the first
instance by provisions of the disposed companies before E.ON itself is
required to make any payments. Guarantees issued by companies that
were later sold by E.ON SE or its legal predecessors are usually included in
the respective final sales contracts in the form of indemnities.
Moreover, E.ON has commitments under which it assumes joint and
several liability arising from its interests in civil-law companies (“GbR”),
non-corporate commercial partnerships and consortia in which it
participates.
The guarantees of E.ON also include items related to the operation of
nuclear power plants. Under the German Nuclear Energy Act
(“Atomgesetz” or “AtG”) and the ordinance regulating the provision for
coverage under the Atomgesetz (“Atomrechtliche Deckungsvorsorge-
Verordnung” or “AtDeckV”) of April 27, 2002, German nuclear power plant
operators are required to provide nuclear accident liability coverage of up
to €2.5 billion per incident.
The coverage requirement is satisfied in part by a standardized insurance
facility in the amount of €255.6 million. The institution Nuklear Haftpflicht
Gesellschaft bürgerlichen Rechts (“Nuklear Haftpflicht GbR”) now only
covers costs between €0.5 million and €15 million for claims related to
officially ordered evacuation measures. Group companies have agreed to
place their subsidiaries operating nuclear power plants in a position to
maintain a level of liquidity that will enable them at all times to meet their
obligations as members of the Nuklear Haftpflicht GbR, in proportion to
their shareholdings in nuclear power plants.
To provide liability coverage for the additional €2,244.4 million per incident
required by the above-mentioned amendments, E.ON Energie AG (“E.ON
Energie”) and the other parent companies of German nuclear power plant
operators reached a Solidarity Agreement (“Solidarvereinbarung”) on
July 11, July 27, August 21, and August 28, 2001, extended by agreement
dated March 25, April 18, April 28, and June 1, 2011, and with agreement
of November 17, November 29, December 2, and December 6, 2021. If an
accident occurs, the Solidarity Agreement calls for the nuclear power plant
operator liable for the damages to receive—after the operator’s own
resources and those of its parent companies are exhausted—financing
sufficient for the operator to meet its financial obligations. Under the
Solidarity Agreement, E.ON Energie’s share of the liability coverage on
December 31, 2024, was 43.3 percent (prior year: 43.3 percent), plus an
additional 5.0 percent charge for the administrative costs of processing
damage claims. The contract does not provide for a change in share for the
2024 calendar year. Sufficient liquidity has been provided for and is
included within the liquidity plan.
Furthermore, as of December 31, 2024, E.ON is continuing to provide
collateral in the amount of €477.5 million (2023: €454.2 million) for the
former Group companies transferred to RWE which are to be repaid or
assumed by RWE Group companies.
Other Financial Obligations
In addition to provisions and liabilities carried on the balance sheet and to
reported contingent liabilities, there also are other financial obligations
arising mainly from contracts entered into with third parties, or on the
basis of legal requirements.
As of December 31, 2024, purchase commitments for investments in
property, plant and equipment amounted to €4.5 billion (2023:
€2.9 billion). Of these commitments, €2.6 billion are due within one year
(2023: €2.4 billion). €2.8 billion of the purchase commitment at
December 31, 2024 (2023: €2.3 billion) relates to the segments Energy
Networks Germany and Sweden.
Additional contractual obligations in place at the E.ON Group as of
December 31, 2024, relate primarily to the purchase of electricity and
natural gas. Fixed financial obligations under electricity purchase contracts
amount to €4.0 billion on December 31, 2024 (2023: €6.7 billion), of
which €2.8 billion (2023: €5.0 billion) is due within one year. Financial
obligations under fixed gas purchase contracts amount to approximately
€3.2 billion on December 31, 2024 (2023: €3.9 billion). Of this amount,
€2.0 billion (2023: €2.8 billion) is due within one year. Additional fixed
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E.ON Integrated Annual Report 2024
187
purchase commitments as of December 31, 2024, amount to €0.7 billion
(2023: €0.8 billion). They essentially include long-term contractual
commitments to purchase heat and alternative fuels. Of these
commitments, €0.2 billion (2023: €0.2 billion) are due within one year.
There are also additional purchase commitments whose amount is not
fixed yet.
Other financial obligations exist only to an insignificant extent. These
include capital commitments in connection with joint ventures, obligations
concerning the acquisition of financial assets, and obligations arising from
capital measures.
(28) Litigation and Claims
A number of different court actions, governmental investigations and
proceedings, and other claims are currently pending or may be instituted or
asserted in the future against companies of the E.ON Group. This in
particular includes an increased number of legal actions and proceedings
relating to contract amendments and price adjustments initiated in
response to market upheavals and the changed economic and geopolitical
situation in the electricity, gas and heat sectors (also as a consequence of
the energy transition and the energy crisis) and concerning price increases
and anticompetitive practices. The courts and authorities are also
subjecting competitive practices to stricter reviews. Where appropriate,
Group companies have recognized corresponding contingent assets (see
Note 17), provisions (see Note 25) or contingent liabilities (see Note 27).
In the Energy Networks business division, Group companies are involved in
proceedings for the award of concessions and in connection with grid
connections and the calculation of the grid fee. Official regulations,
approvals and changes in regulatory practice have given rise to legal
disputes. Of particular note here are effects in connection with the
regulatory treatment of capital costs, return on equity and other key
regulatory parameters. The national legal framework conditions within
Europe are subject to changes, some of which have a significant impact on
network operations. Owing to a number of factors, including regulatory
and legal decisions, the regulatory framework has increased here.
However, these regulatory interventions are not restricted to the Energy
Networks business division; distribution activities in the Energy
Infrastructure Solutions and Energy Retail business divisions have also
been affected by regulatory measures.
There are also legal disputes in connection with completed M&A activities,
in particular as a result of the acquisition of innogy SE. With regard to the
latter, all legal actions brought against the European Commission’s merger
control approval decision were dismissed by the European General Court
(ECG); the not yet finally adjudicated actions are now pending before the
Court of Justice of the European Union (CJEU) as the court of final appeal.
E.ON SE intervenes on the side of the European Commission in these
proceedings.
(29) Supplemental Cash Flow Disclosures
In the current fiscal year, E.ON made external payments for additions to
consolidated shareholdings and activities in the amount of €46 million
(2023: €14 million). Cash and cash equivalents in the amount of €4 million
were also acquired. The purchases also resulted in the acquisition of assets
in the amount of €41 million and liabilities in the amount of €18 million.
The total consideration received by E.ON in the reporting year on the
disposal of consolidated equity interests and activities generated cash
inflows of €0 million (2023: €1 million). Cash and cash equivalents
disposed of amounted to €0 million (2023: €0 million). The sale of the
consolidated activities led to reductions of €0 million (2023: €1 million) in
assets and €0 million (2023: €1 million) in provisions and liabilities.
Cash provided by operating activities of continuing operations before
interest and taxes of €7.3 billion was €0.1 billion above the prior-year
figure (€7.2 billion). This resulted from an increase of €0.3 billion at Energy
Networks in Germany, which is mainly attributable to positive changes in
working capital. The 2023 financial year was characterized by temporary
one-off effects and higher market prices, whereas the current development
of receivables and liabilities led to a normalization of working capital and
thus to a year-on-year improvement. The €0.2 billion increase at Energy
Retail is attributable to adverse changes in working capital in the prior year
that did not recur in the 2024 financial year. The negative changes in
working capital in 2023 were mainly attributable to the timing difference
between customer installment payments already received in 2022 and
payments from government support measures and the related cash
outflows from commodity procurement in 2023. The shutdown of E.ON’s
last nuclear power plant in April of last year and the commencement of
dismantling resulted in a €0.2 billion decline in operating cash flow at
Corporate Functions/Other.
Cash provided by investing activities of continuing operations of
-€6.6 billion was €1.0 billion below the prior-year figure of -€5.6 billion.
This includes cash-effective investments of €7.5 billion (prior year:
€6.5 billion). This development is primarily attributable to the planned
increase in investments in property, plant, and equipment and intangible
assets, particularly at the network business Germany. In addition, the net
of cash inflow and outflow from securities was higher than in the prior
year.
Cash provided by financing activities of continuing operations of
€1.1 billion was about €3.0 billion above the prior-year figure of
-€1.8 billion. The net of the issuance and repayment of bonds, commercial
paper, and bank liabilities led to a year-on-year improvement in cash
provided by financing activities. The effects relating to variation margins
were lower in the year under review than in the prior year.
Supplemental Information on Cash Flows from Operating
Activities
€ in millions
2024
2023
Income taxes paid (less refunds)
-742
-716
Interest paid
-1,210
-1,203
Interest received
282
348
Dividends received
581
571
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E.ON Integrated Annual Report 2024
188
(30) Derivative Financial Instruments and Hedging
Transactions
Strategy and Objectives
E.ON’s policies permit the use of derivatives if they are based on underlying
assets or liabilities, contractual rights and obligations, or planned
transactions.
At the E.ON Group, hedge accounting in accordance with IFRS 9 is
employed primarily in connection with hedging long-term liabilities and
future financing via interest-rate derivatives and for hedging long-term
foreign currency receivables and payables via currency derivatives. E.ON
also hedges net investments in foreign operations against foreign currency
risks on a case-by-case basis.
In the commodity sector, fluctuations in future cash flows from
procurement and sales transactions are economically hedged by offsetting
transactions. Hedge accounting was applied in individual cases with regard
to hedging electricity and gas price change risks.
To hedge currency risk, E.ON held hedging transactions in the reporting
year in pounds sterling at an average hedging rate of £0.90/€ (2023:
£0. 90/€) and in US dollars at an average hedging rate of US$1.36/€
(2023: US$1.36/€). Hedging transactions existed at an average interest
rate of 3.12 percent (2023: 2.80 percent) to hedge the interest rate risk in
the eurozone. To hedge commodity price risk, E.ON held hedging
transactions with an average hedged price of €37/MWh (2023:
€30/MWh) for gas and an average hedged price of €122/MWh (2023:
€115/MWh) for electricity.
Fair Value Hedges
Fair value hedges are used to protect against the risk from changes in
market values. Gains and losses on these hedges are generally reported in
that line item of the income statement which also includes the respective
hedged items.
Cash Flow Hedges
Cash flow hedges are used to protect against the risk arising from variable
cash flows. Interest rate swaps and cross-currency interest rate swaps are
the principal instruments used to limit interest rate and currency risks. The
purpose of these swaps is to maintain the level of payments arising from
long-term interest-bearing receivables and liabilities denominated in
foreign currency and euros by using cash flow hedge accounting in the
functional currency of the respective E.ON company. Futures contracts are
concluded to reduce future cash flow fluctuations arising from variable
spot prices for commodity transactions. Cash flow hedge accounting to
hedge the risk of changes in commodity prices (electricity and gas) was
applied only in individual cases in the 2024 fiscal year. The following table
presents the carrying amounts of the hedging instruments and the changes
in the fair values of the hedging instruments and hedged items by hedged
risk type:
The total amount of ineffectiveness for cash flow hedges recorded for the
year ended December 31, 2024, produced income of €9 million (2023:
income of €6 million) mainly resulting from exchange rate hedging.
Gains and losses from the ineffective portions of cash flow hedges are
classified as other operating income or other operating expenses.
Carrying Amounts of Hedging Instruments and Changes in Fair Value of Hedging Instruments and Hedged Items in Connection with
Cash Flow Hedges
Carrying amount
Receivables from derivative
financial instruments
Liabilities from derivative
financial instruments
Change in the fair value of the
designated portion of hedging
instruments
Change in the fair value of
hedged items
€ in millions
2024
2023
2024
2023
2024
2023
2024
2023
Currency risk
332
325
212
165
-12
-141
12
140
Interest-rate risk
–
1
226
327
101
72
-127
7
Commodity price change
risk
15
0
3
3
13
-3
113
520
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E.ON Integrated Annual Report 2024
189
The development of OCI arising from cash flow hedges, broken down by
hedged risk type, is as follows:
The balance of the OCI arising from cash flow hedges as of
December 31, 2024, contains €0.2 billion relating to hedging of interest-
rate risk (2023: €0.4 billion).
Reclassifications recognized in income are generally reported in that line
item of the income statement which also includes the respective hedged
item.
Changes in OCI Arising from Cash Flow Hedges
€ in millions
Total
Currency risk
Interest-rate
risk
Commodity
price change
risk
Balance as of January 1, 2023
292
Unrealized changes—hedging reserve
-139
-58
-77
-4
Unrealized changes—reserve for hedging costs
13
13
–
–
Reclassification adjustments recognized in income
-549²
32
-65
-516
Change in scope of consolidation
–
–
–
–
Income taxes
207
–
–
–
Companies accounted for under the equity method
-51
–
–
–
Balance as of December 31, 20231
-227
Balance as of January 1, 2024
-227
Unrealized changes—hedging reserve
-33
-112
71
8
Unrealized changes—reserve for hedging costs
27
27
–
–
Reclassification adjustments recognized in income
-138²
-7
-5
-126
Change in scope of consolidation
1
–
–
–
Income taxes
47
–
–
–
Companies accounted for under the equity method
24
–
–
–
Balance as of December 31, 20241
-299
–
–
–
1As of December 31, 2024, includes -€206 million (2023: -€141 million) from terminated cash flow hedges.
2Of this amount, €0 million (previous year: -€116 million) relates to hedged cash flows that are no longer expected to occur.
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E.ON Integrated Annual Report 2024
190
The nominal volume of the hedging instruments is presented in the
following table:
Net Investment Hedges
The Company uses foreign currency forwards, foreign currency swaps and
foreign currency loans to protect the value of its net investments in its
foreign operations denominated in foreign currency.
The carrying amount of the assets used as hedging instruments as of
December 31, 2024, was €19 million (2023: €2 million) and the carrying
amount of the liabilities used as hedging instruments was €1,208 million
(2023: €1, 241 million). The fair values of the designated portion of the
hedging instruments changed by +€40 million in the reporting period
(2023: -€110 million).
As in the previous year, no ineffectiveness resulted from net investment
hedges in 2024.
The development of OCI arising from net investment hedges is as follows:
Changes in OCI Arising from Net Investment Hedges
€ in millions
Currency risk
Balance as of January 1, 2023
354
Unrealized changes—hedging reserve
-113
Unrealized changes—reserve for hedging costs
2
Reclassification adjustments recognized in income
–
Change in scope of consolidation
–
Income taxes
23
Balance as of December 31, 20231
266
Balance as of January 1, 2024
266
Unrealized changes—hedging reserve
40
Unrealized changes—reserve for hedging costs
–
Reclassification adjustments recognized in income
–
Change in scope of consolidation
–
Income taxes
-12
Balance as of December 31, 20241
294
1As of December 31, 2024, includes -€71 million (2023: -€71 million) from terminated net
investment hedges.
As a rule, reclassification adjustments recognized in income are reported
under other operating income and expenses. The nominal volume of
hedging instruments in net investment hedges amounted to €4,668 million
as of December 31, 2024 (2023: €4,613 million). Since the currency risk of
net investment hedges is hedged through the ongoing rollover of the
hedging instruments, the majority are concluded with a remaining term of
less than one year.
Valuation of Derivative Instruments
The fair value of derivative financial instruments depends on movements in
underlying market factors. The Company assesses and monitors the fair
value of derivative instruments on a periodic basis. The fair value to be
determined for each derivative instrument is the price that would be
received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants on the measurement date (exit
price). E.ON also takes into account the counterparty credit risk for both
own credit risk (debt value adjustment) and the risk of the corresponding
counterparty (credit value adjustment) when determining fair value. The
fair values of derivative instruments are calculated using common market
valuation methods with reference to available market data on the
measurement date.
The following is a summary of the methods and assumptions for the
valuation of utilized derivative financial instruments in the Consolidated
Financial Statements:
• Currency, electricity and gas forward contracts, swaps, and emissions-
related derivatives are valued separately at their forward rates and
prices as of the balance sheet date. Whenever possible, forward rates
and prices are based on market quotations, with any applicable forward
premiums and discounts taken into consideration.
• Market prices for commodity options are valued using standard option
pricing models commonly used in the market.
• The fair values of existing instruments to hedge interest risk are
determined by discounting future cash flows using market interest rates
over the remaining term of the instrument. Present values are
determined for interest rate, currency and cross-currency interest rate
swaps for each individual transaction as of the balance sheet date.
Interest income and expenses are recognized in income at the date of
payment or accrual.
Nominal Values of Hedging Instruments in Connection with Cash Flow Hedges (Fiscal Year)
Maturity
Total
€ in millions
< 1 year
1–5 years
> 5 years
2024
Currency risk
225
213
2,473
2,911
Interest-rate risk
0
1,500
1,500
3,000
Commodity price change risk
226
6
–
232
Nominal Values of Hedging Instruments in Connection with Cash Flow Hedges (Prior Year)
Maturity
Total
€ in millions
< 1 year
1–5 years
> 5 years
2023
Currency risk
158
290
2,200
2,648
Interest-rate risk
1,000
1,500
3,000
5,500
Commodity price change risk
52
9
–
61
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E.ON Integrated Annual Report 2024
191
• Equity forwards are valued on the basis of the stock prices of the
underlying equities, taking into consideration any timing components.
• Exchange-traded futures and option contracts are valued individually at
daily settlement prices determined on the futures markets that are
published by their respective clearing houses. Paid initial margins are
disclosed under other assets. Variation margins received or paid during
the term of such contracts are stated under other liabilities or other
assets, respectively, unless they are offset against the recognized
market values of the commodity derivatives, as the offsetting criteria of
IAS 32.42 are met.
• Certain long-term energy contracts are valued with the aid of valuation
models that use internal data if market prices are not available. A
hypothetical 10 percent increase or decrease in these internal valuation
parameters as of the balance sheet date would lead to a theoretical
increase in market values of €7 million or a decrease of €9 million.
(31) Additional Disclosures on Financial Instruments
The carrying amounts of the financial instruments, their grouping into
IFRS 9 measurement categories, their fair values and their measurement
sources by class are presented in the following table:
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E.ON Integrated Annual Report 2024
192
Carrying Amounts, Fair Values and Measurement Categories by Class within the Scope of IFRS 7 as of December 31, 2024
€ in millions
Carrying amounts
Carrying amounts
within the scope of
IFRS 7
Measurement
categories
under IFRS 91
Fair value
Determined using
market prices
(Level 1)
Derived from active
market prices
(Level 2)
Determined by
valuation methods
(Level 3)
Equity investments
2,752
509
FVPL
509
60
2
447
Financial receivables and other financial assets
1,650
714
Receivables from finance leases
242
242
n/a
242
Other financial receivables and financial assets
1,408
472
469
393
AmC
390
–
161
229
79
FVPL
79
–
–
79
Trade receivables and other operating assets
19,371
14,081
Trade receivables
9,318
9,226
AmC
Derivatives with no hedging relationships
3,909
3,908
FVPL
3,908
39
3,387
482
Derivatives with hedging relationships
366
366
n/a
366
–
366
–
Other operating assets
5,778
581
AmC
619
–
225
394
Securities and fixed-term deposits
2,142
2,142
2,142
1,069
1,073
–
1,541
FVPL
1,541
1,069
472
–
601
FVOCI
601
601
–
Cash and cash equivalents
5,746
5,746
382
FVPL
382
–
382
–
5,364
AmC
Restricted liquid funds
255
255
AmC
Assets held for sale
697
502
–
–
–
–
501
AmC
501
–
501
–
1
FVPL
1
–
1
–
Total assets
32,613
23,949
Financial liabilities
39,064
38,484
Bonds
32,386
32,386
AmC
30,735
29,117
1,618
–
Commercial paper
220
220
AmC
220
–
220
–
Bank loans/liabilities to banks
1,891
1,891
AmC
1,837
–
628
1,209
Lease obligations
3,191
3,140
n/a
3,108
Other financial liabilities
1,376
847
AmC
836
–
-24
860
Trade payables and other operating liabilities
26,856
17,932
Trade payables
10,870
10,742
AmC
Derivatives with no hedging relationships
2,420
2,420
FVPL
2,420
4
1,922
494
Derivatives with hedging relationships
1,649
1,649
n/a
1,649
–
1,649
–
Liabilities related to IAS 322
314
314
AmC
312
–
–
312
Other operating liabilities
11,603
2,807
AmC
2,368
–
1,309
1,059
Liabilities associated with assets held for sale
400
348
–
348
AmC
348
–
348
–
–
FVPL
–
–
–
–
Total liabilities
66,320
56,764
1FVPL: Fair Value through P&L; FVOCI: Fair Value through OCI; AmC: Amortized Cost. The measurement categories are described in detail in Note 1. The amounts determined using valuation techniques with unobservable inputs (Level 3 of the fair value hierarchy) correspond to the difference between the total fair
values of the two hierarchy levels listed.
2The liabilities from put options include counterparty obligations and non-controlling interests in fully consolidated partnerships (see Note 26).
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193
Carrying Amounts, Fair Values and Measurement Categories by Class within the Scope of IFRS 7 as of December 31, 2023
€ in millions
Carrying amounts
Carrying amounts
within the scope of
IFRS 7
Measurement
categories
under IFRS 91
Fair value
Determined using
market prices
(Level 1)
Derived from active
market prices
(Level 2)
Determined by
valuation methods
(Level 3)
Equity investments
2,561
507
FVPL
507
71
–
436
Financial receivables and other financial assets
2,164
849
Receivables from finance leases
252
252
n/a
222
Other financial receivables and financial assets
1,912
597
596
496
AmC
495
85
145
265
101
FVPL
101
–
–
101
Trade receivables and other operating assets
22,855
18,861
Trade receivables
10,404
10,243
AmC
Derivatives with no hedging relationships
7,657
7,657
FVPL
7,657
1
7,124
532
Derivatives with hedging relationships
328
328
n/a
328
–
328
–
Other operating assets
4,466
633
AmC
626
112
132
382
Securities and fixed-term deposits
2,552
2,552
2,552
1,371
1,181
–
1,644
FVPL
1,644
1,149
495
–
908
FVOCI
908
222
686
–
Cash and cash equivalents
5,585
5,585
–
358
FVPL
358
–
358
–
5,227
AmC
Restricted liquid funds
452
452
AmC
Assets held for sale
–
–
–
AmC
–
–
FVPL
–
–
–
–
Total assets
36,169
28,806
Financial liabilities
35,440
34,923
Bonds
29,426
29,426
AmC
27,728
26,330
1,398
–
Commercial paper
214
214
AmC
217
–
217
–
Bank loans/liabilities to banks
1,671
1,671
AmC
1,331
–
480
851
Lease obligations
2,874
2,822
n/a
2,720
Other financial liabilities
1,255
790
AmC
770
–
-8
778
Trade payables and other operating liabilities
35,714
27,471
Trade payables
11,580
11,476
AmC
Derivatives with no hedging relationships
10,704
10,704
FVPL
10,704
–
10,154
550
Derivatives with hedging relationships
1,736
1,736
n/a
1,736
–
1,736
–
Liabilities related to IAS 322
563
563
AmC
88
–
–
88
Other operating liabilities
11,131
2,992
AmC
2,722
182
1,335
1,205
Liabilities associated with assets held for sale
–
–
–
AmC
–
–
FVPL
–
–
–
–
Total liabilities
71,154
62,394
1FVPL: Fair Value through P&L; FVOCI: Fair Value through OCI; AmC: Amortized Cost. The measurement categories are described in detail in Note 1. The amounts determined using valuation techniques with unobservable inputs (Level 3 of the fair value hierarchy) correspond to the difference between the total fair
values of the two hierarchy levels listed.
2The liabilities from put options include counterparty obligations and non-controlling interests in fully consolidated partnerships (see Note 26).
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The carrying amounts of cash and cash equivalents and of trade
receivables and trade payables are considered reasonable estimates of
their fair values because of their short maturity.
Where the fair value of a financial instrument can be derived from an active
market without the need for an adjustment, that value is used as the fair
value. This applies in particular to equities held and to bonds held and
issued.
The fair value of shareholdings in unlisted companies and of debt
instruments that are not actively traded, such as loans received, loans
granted and financial liabilities, is determined by discounting future cash
flows. Any necessary discounting takes place using current market interest
rates over the remaining terms of the financial instruments. The
determination of the fair value of derivative financial instruments is
discussed in Note 30.
At the end of each reporting period, E.ON assesses whether there might be
reasons for reclassification between hierarchy levels. In 2024, there was no
reclassification between hierarchy level 1 to hierarchy level 2. The input
parameters of Level 3 of the fair value hierarchy for equity investments are
specified taking into account economic developments and available
industry and corporate data (see also Note 1). A hypothetical change of
+10 percent or -10 percent in these key internal valuation parameters as of
the balance sheet date would lead to a theoretical increase in the market
values of +€31 million or a decrease of -€31 million, respectively. Certain
long-term energy contracts are measured using valuation models based on
internal fundamental data if market prices are not available. A hypothetical
change of ±10 percent in the internal valuation parameters as of the
balance sheet date would result in a theoretical increase in fair values of
+€7 million or a decrease of €9 million. A change of +10 percent or -10
percent in the key internal valuation parameters of financial receivables
and other financial assets as of the balance sheet date would result in a
theoretical increase in fair values of €1 million or a decrease of
-€2 million. The fair values determined using valuation techniques for
financial instruments carried at fair value are reconciled as shown in the
following table:
Fair Value Hierarchy Level 3 Reconciliation
Transfers
€ in millions
Jan. 1, 2024
Purchases
(including
additions)
Sales
(including
disposals)
Settlements
Gains/losses
in income
statement
into
Level 3
out of
Level 3
Exchange rate
differences
Dec. 31, 2024
Equity investments
436
26
-14
–
-4
–
–
4
448
Derivative financial instruments
-18
-6
–
–
12
–
–
–
-12
Financial receivables and other financial assets
101
–
–
-23
2
–
–
–
80
Total
519
20
-14
-23
10
–
–
4
516
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The extent to which the offsetting of financial assets and financial liabilities
is covered by netting agreements is presented in the following tables.
Compulsory netting is carried out if the netting criteria pursuant to
IAS 32.42 are met cumulatively.
Transactions and business relationships resulting in the financial assets
and liabilities presented are regularly concluded on the basis of standard
contracts that permit the conditional netting of open transactions in the
event that a counterparty becomes insolvent. If there is also currently a
legal right to set off and the intention is to settle on a net basis, offsetting is
mandatory in accordance with IAS 32.
The netting agreements are derived from netting clauses contained in
master agreements including those of the International Swaps and
Derivatives Association (ISDA), the German Master Agreement for
Financial Derivatives Transactions (DRV), the European Federation of
Energy Traders (EFET) and the Financial Energy Master Agreement
(FEMA).
Collateral pledged to and received from financial institutions in relation to
these liabilities and assets limits the utilization of credit lines in the fair
value measurement of interest rate and currency derivatives, and is shown
in the table.
Netting Agreements for Financial Assets and Liabilities as of December 31, 2024
€ in millions
Gross amount Amount offset
Carrying
amount
Conditional
netting
amount
(netting
agreements)
Financial
collateral
received/
pledged
Net value
Financial assets
Trade receivables
10,650
1,425
9,225
138
2
9,085
Commodity derivatives
2,955
–
2,955
1,542
–
1,413
Interest-rate and currency derivatives
1,320
–
1,320
–
81
1,239
Total
14,925
1,425
13,500
1,680
83
11,737
Financial liabilities
Trade payables
12,295
1,425
10,870
541
–
10,329
Commodity derivatives
2,645
–
2,645
1,139
–
1,506
Interest-rate and currency derivatives
1,424
–
1,424
–
197
1,227
Total
16,364
1,425
14,939
1,680
197
13,062
Netting Agreements for Financial Assets and Liabilities as of December 31, 2023
€ in millions
Gross amount Amount offset
Carrying
amount
Conditional
netting
amount
(netting
agreements)
Financial
collateral
received/
pledged
Net value
Financial assets
Trade receivables
14,172
3,912
10,260
192
6
10,062
Commodity derivatives
6,712
3
6,709
4,049
–
2,660
Interest-rate and currency derivatives
1,276
–
1,276
–
27
1,249
Total
22,160
3,915
18,245
4,241
33
13,971
Financial liabilities
Trade payables
15,492
3,912
11,580
294
1
11,285
Commodity derivatives
10,835
3
10,832
3,948
–
6,884
Interest-rate and currency derivatives
1,608
–
1,608
–
388
1,220
Total
27,935
3,915
24,020
4,242
389
19,389
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196
The following two tables illustrate the contractually agreed (undiscounted)
cash outflows arising from the liabilities included in the scope of IFRS 7:
Cash Flow Analysis as of December 31, 2024
€ in millions
Cash outflows
2025
Cash outflows
2026
Cash outflows
2027–2029
Cash outflows
from 2030
Bonds
3,339
2,664
9,661
25,729
Commercial paper
220
–
–
–
Bank loans/liabilities to banks
852
564
149
453
Lease obligations
636
499
1,300
1,965
Other financial liabilities
1,269
98
220
26
Financial guarantees
1
–
–
7
Cash outflows for financial liabilities
6,317
3,825
11,330
28,180
Trade payables
10,938
–
–
–
Derivatives (with/without hedging relationships)
9,793
2,237
3,910
8,222
Put option liabilities under IAS 32
58
15
198
84
Other operating liabilities
3,206
52
41
70
Cash outflows for trade payables and other operating liabilities
23,995
2,304
4,149
8,376
Cash outflows for liabilities within the scope of IFRS 7
30,312
6,129
15,479
36,556
Cash Flow Analysis as of December 31, 2023
€ in millions
Cash outflows
2024
Cash outflows
2025
Cash outflows
2026–2028
Cash outflows
from 2029
Bonds
2,910
3,159
7,264
19,578
Commercial paper
214
–
–
–
Bank loans/liabilities to banks
776
58
555
373
Lease obligations
590
469
1,054
2,031
Other financial liabilities
1,382
62
187
22
Financial guarantees
–
1
–
7
Cash outflows for financial liabilities
5,872
3,749
9,060
22,011
Trade payables
11,580
–
–
–
Derivatives (with/without hedging relationships)
16,788
3,781
2,269
9,682
Put option liabilities under IAS 32
447
34
–
88
Other operating liabilities
3,070
61
16
6
Cash outflows for trade payables and other operating liabilities
31,885
3,876
2,285
9,776
Cash outflows for liabilities within the scope of IFRS 7
37,757
7,625
11,345
31,787
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Financial guarantees with a total nominal volume of €21 million (2023:
€15 million) were issued to companies outside of the Group. This amount is
the maximum amount that E.ON would have to pay in the event of claims
on the guarantees. E.ON has recognized a liability for this in the amount of
€8 million (2023: €8 million).
For financial liabilities that bear floating interest rates, the rates that were
fixed on the balance sheet date are used to calculate future interest
payments for subsequent periods as well. Financial liabilities that can be
terminated at any time are assigned to the earliest maturity band in the
same way as put options that are exercisable at any time.
In gross-settled derivatives (usually currency derivatives and commodity
derivatives), outflows are accompanied by related inflows of funds or
commodities.
The net gains and losses from financial instruments by IFRS 9 category are
shown in the following table:
Net Gains and Losses by Category
€ in millions
2024
2023
Financial assets Amortized Cost
-339
-748
Financial liabilities Amortized Cost
-1,132
-899
Fair Value through P&L
529
-15,810
Fair Value through OCI
35
52
Total
-907
-17,405
The net result of the category fair value through OCI results in particular
from currency translation effects, interest results and income from the sale
of fair value through OCI securities.
In addition to impairments of financial assets, net gains and losses in the
amortized cost category are due primarily to interest income or expenses
from financial assets and liabilities and effects from the currency
translation of financial liabilities.
The net gains and losses in the fair value through profit or loss
measurement category encompass both the changes in fair value from
derivative financial instruments and from equity instruments, and gains
and losses on realization. The increase in net results was due in particular
to reduced income from the valuation and realization of commodity
derivatives.
Impairments of Financial Assets
Impairment losses on financial assets must be recognized not only for
losses already incurred but also for expected future credit losses. E.ON
takes into account expected future credit losses of financial assets carried
at amortized cost, financial assets measured at fair value through other
comprehensive income, and receivables from finance leases.
For trade receivables, expected credit losses are recognized over their
entire residual term using the simplified method (lifetime expected credit
loss (ECL) trade receivables). For other financial assets, E.ON first
determines the credit loss expected within the first 12 months (stage 1—
12 month ECL). In derogation of this, in the event of a significant increase
in the default risk, the expected credit loss over the entire residual term of
the respective instrument is recognized (stage 2—lifetime ECL). Whether
the default risk has increased significantly depends largely on the
counterparty risk as calculated internally on initial recognition. E.ON uses
an 18-point internal rating scale to monitor counterparty risk. A significant
increase in the default risk is assumed at the earliest after a three-level
decline in the rating (since initial recognition). If there are objective
indications of an actual default, an individual impairment loss must be
recognized on the income statement (stage 3—losses already incurred).
E.ON distinguishes between two approaches when calculating expected
future credit losses. If external or internal rating information is available,
the expected credit loss for trade receivables and other financial assets is
determined on the basis of this data. If no rating information is available,
E.ON determines default ratios for trade receivables on the basis of
historical default rates, taking into account forward-looking information on
economic developments. In the E.ON Group, a default or the classification
of a receivable as uncollectable is assumed after 180, 270 or 360 days,
depending on the region.
In 2024, valuation allowances for trade receivables changed as shown in
the following table:
Valuation Allowances for Trade Receivables
€ in millions
2024
2023
Balance as of January 1
-2,491
-1,612
Disposals
595
121
Impairments
-539
-983
Other1
-64
-17
Balance as of December 31
-2,499
-2,491
1The item "Other" includes currency translation differences.
There were no significant changes in valuation allowances for other
financial assets measured at amortized cost or at fair value through other
comprehensive income, or for receivables from finance leases in 2024.
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
198
The default risks for financial assets for which rating information is
available can be found in the following table for each rating grade and
separately according to the stages of impairment existing in 2024:
The default risks for trade receivables for which no rating information is
available and the amount of expected credit losses over the remaining term
are shown in the following matrix for each maturity class:
Risk Management
Principles
The prescribed processes, responsibilities and actions concerning financial
and risk management are described in detail in internal risk management
guidelines applicable throughout the Group. The units have developed
additional guidelines of their own within the confines of the Group’s overall
guidelines. To ensure efficient risk management at the E.ON Group, the
Trading (Front Office), Finance Controlling (Middle Office) and Financial
Settlement (Back Office) departments are organized as strictly separate
units. Risk steering and reporting in the areas of interest rates, currencies
and credit for banks and liquidity management is performed by the Finance
Controlling department (in the credit area, also in part by Counterparty Risk
Management), while risk steering and reporting in the area of commodities
and in the credit area for industrial enterprises is performed at Group level
by a separate department.
E.ON uses a Group-wide treasury, risk management and reporting system.
This system is a standard information technology solution that is fully
integrated and is continuously updated. The system is designed to provide
for the analysis and monitoring of the E.ON Group’s exposure to liquidity,
foreign exchange and interest risks. On a Group-wide basis, Finance
Controlling/Counterparty Risk Management monitors and steers credit
risks for banks, and Counterparty Risk Management monitors and steers
corporates of a certain materiality. These activities are carried out each
using a standard software package.
Separate Risk Committees/Steering Groups are responsible for the
maintenance and further development of the strategy set by the
Management Board of E.ON SE with regard to commodity, treasury and
credit risk management policies.
1. Liquidity Management
The primary objectives of liquidity management at E.ON consist of
ensuring the ability to pay at all times, the timely satisfaction of contractual
payment obligations and the optimization of costs within the E.ON Group.
Cash pooling and external financing are largely centralized at E.ON SE and
certain financing companies. Funds are provided to the other Group
companies as needed on the basis of an “in-house banking” solution.
E.ON SE determines the Group’s financing requirements on the basis of
short- and medium-term liquidity planning. The financing of the Group is
controlled and implemented on a forward-looking basis in accordance with
the planned liquidity requirement or surplus. Relevant planning factors
taken into consideration include operating cash flow, capital expenditures,
divestments, margin payments and the maturity of bonds and commercial
paper.
Credit Risk Exposure for Financial Assets for Which Rating Information is Available
Stage 1 financial assets
Trade receivables
€ in millions
2024
2023
2024
2023
Gross carrying amount investment grade
6,498
6,886
1,323
1,455
Gross carrying amount non-investment grade
14
36
630
848
Gross carrying amount default grade
–
–
252
313
Total
6,512
6,922
2,205
2,616
Credit Risk Exposure for Trade Receivables for Which No Rating Information is Available
Gross carrying amount
Lifetime ECL
€ in millions
2024
2023
2024
2023
Not past due
4,879
5,980
95
110
Past due by
4,190
3,757
2,180
2,163
up to 30 days
761
632
57
45
31 to 60 days
315
380
48
49
61 to 90 days
269
232
49
38
91 to 180 days
447
512
147
160
more than 180 days incl. specific valuation allowances
2,399
2,001
1,879
1,871
Total
9,069
9,737
2,275
2,273
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
199
2. Price Risks
In the normal course of business, the E.ON Group is exposed to risks arising
from price changes in foreign exchange, interest rates, commodities and
asset management. These risks create volatility in earnings, equity, debt
and cash flows from period to period. E.ON has developed a variety of
strategies to limit or eliminate these risks, including the use of derivative
financial instruments, among others.
3. Credit Risks
E.ON is exposed to credit risk in its operating activities and through the use
of financial instruments. Uniform credit risk management procedures are in
place throughout the Group to identify, measure and steer credit risks.
The following discussion of E.ON’s risk management activities and the
estimated amounts generated from value-at-risk (“VaR”) and sensitivity
analyses are “forward-looking statements” that involve risks and
uncertainties. Actual results could differ materially from those projected
due to actual, unforeseeable developments in the global financial markets.
The methods used by the Company to analyze risks should not be
considered forecasts of future events or losses. For example, E.ON faces
certain risks that are either non-financial or non-quantifiable. Such risks
principally include country risk, operational risk, regulatory risk and legal
risk, which are not represented in the following analyses.
Foreign Exchange Risk Management
E.ON SE is responsible for steering the currency risks to which the E.ON
Group is exposed.
Because it holds interests in businesses outside of the eurozone, currency
translation risks arise within the E.ON Group. Fluctuations in exchange
rates produce accounting effects attributable to the translation of the
balance sheet and income statement items of the foreign consolidated
Group companies included in the Consolidated Financial Statements.
Translation risks are hedged through borrowing in the corresponding local
currency, which may also include shareholder loans in foreign currency. In
addition, derivative and non-derivative financial instruments are employed
as needed. The hedges qualify for hedge accounting under IFRS as hedges
of net investments in foreign operations. The Group’s translation risks are
reviewed at regular intervals and the level of hedging is adjusted whenever
necessary. The respective debt factor, net assets and the enterprise value
denominated in the foreign currency are the principal criteria governing the
level of hedging.
The E.ON Group is also exposed to operating and financial transaction risks
attributable to foreign currency transactions. The subsidiaries are
responsible for managing their operating currency risks and are generally
required to hedge their currency risks through E.ON SE. E.ON SE
coordinates hedging throughout the Group companies and makes use of
external derivatives as needed. It may either directly close out foreign
currency positions that have been tendered, in whole or in part, through
external transactions, or keep the position open within approved limits. The
one-day value-at-risk (95 percent confidence) for transactional foreign
currency positions totaled €0.3 million as of December 31, 2024 (2023:
€0.2 million) and is mainly determined by the currencies Swedish krona,
Danish krone and Polish zloty.
Financial transaction risks result from payments originating from financial
receivables and payables. They are generated both by external financing in
a variety of foreign currencies, and by shareholder loans from within the
Group denominated in foreign currency. Financial transaction risks are
generally hedged.
Interest Rate Risk Management
E.ON is exposed to profit risks arising from floating-rate financial liabilities
and future (re)financing needs. Positions based on fixed interest rates, on
the other hand, are subject to changes in fair value resulting from the
volatility of market interest rates. E.ON seeks a balanced maturity profile.
This is influenced, among other factors, by the type of business model,
existing liabilities as well as the regulatory framework in which E.ON
operates. Interest rate derivatives are also used to manage interest rate
risk.
With interest rate derivatives and cash on hand included, the share of
financial liabilities with floating interest rates or with maturities of less
than 12 months was 0 percent as of December 31, 2024 (2023:
0 percent). The volume-weighted average interest rate of the financial
liabilities, including interest rate derivatives, was 3.0 percent as of
December 31, 2024 (2023: 2.8 percent).
As of December 31, 2024, the E.ON Group held interest rate derivatives
with a nominal value of €3,872 million (2023: €5,512 million).
A sensitivity analysis was performed on the Group’s floating-rate
borrowings and planned financing, including interest rate risk hedges. This
measure is used for internal risk controlling and reflects the economic
position of the E.ON Group. A one-percentage-point upward or downward
change in interest rates (across all currencies) would raise or lower interest
charges by ±€23 million (2023: ±€15 million) in the subsequent fiscal year.
Commodity Price Risk Management
The E.ON portfolio of physical assets, long-term contracts and end-
customer sales is exposed to substantial risks from fluctuations in
commodity prices. The principal commodity prices to which E.ON is
exposed relate, in particular, to electricity, gas, guarantees of origin, and
emissions certificates.
The objective of commodity risk management is to transact through
physical and financial contracts to optimize the value of the portfolio while
reducing the potential negative deviation from target EBITDA and OCF.
In the normal course of business of the underlying energy production and
retail sales activities, E.ON’s individual management units are exposed to
uncertain commodity market prices, which impacts operating results. The
external trading on commodity markets contributes to reducing open
commodity positions driven by sales and is undertaken in strict accordance
with approved commodity hedging strategies.
A small number of proprietary trading transactions are entered into in
separate trading books, which are subject to strict monitoring and limits
based on risk metrics and governance. The processes and operational
management models within the trading system are monitored by the local
market risk teams and centrally managed by the Risk Management
department.
The subsidiary, E.ON Energy Markets GmbH (EEM), acts as a central
interface to the wholesale markets. The main function of EEM is to
consolidate E.ON’s commodity positions, to reduce price risks from the
distribution business and to diversify and reduce credit and margin risks.
As of December 31, 2024, the E.ON Group primarily held electricity and
gas derivatives with a nominal value of €49,242 million (2023:
€125,767 million). Electricity derivatives account for €15,398 million
(2023: €45,418 million) of this amount and gas derivatives for
€33,692 million (2023: €80,268 million).
A key foundation of the commodity risk management system is the Group-
wide Commodity Risk Policy and the corresponding internal policies of the
units. These specify the control principles for commodity risk management,
minimum required standards and clear management and operational
responsibilities.
Commodity exposures and risks are reported across the Group on a
quarterly basis to the members of the Risk Committee.
A hypothetical change in market prices at the reporting date of
+10 percent or -10 percent would result in a theoretical increase in fair
value and recognition in income in the amount of €751 million, or a
decrease in fair value and recognition in expense in the amount of
€771 million for the electricity derivatives (2023: recognition in income of
€767 million or recognition in expense of €768 million). A corresponding
hypothetical change would result in a theoretical increase in fair value and
recognition in income in the amount of €376 million or a decrease in fair
value and recognition in expense in the amount of €376 million for gas
derivatives (2023: ±€279 million). For electricity derivatives subject to
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
200
hedge accounting a hypothetical change in market prices of +10 percent or
-10 percent would result in a theoretical increase in fair value and
recognition in income in the amount of €8 million through OCI, or a
decrease in fair value and recognition in expense in the amount of
€7 million through OCI. For gas derivatives subject to hedge accounting a
hypothetical change in market prices of +10 percent or -10 percent would
result in a theoretical increase in fair value and recognition in income in the
amount of €5 million through OCI, or a decrease in fair value and
recognition in expense in the amount of €5 million through OCI.
Credit Risk Management
In order to minimize credit risk arising from operating activities and from
the use of financial instruments, the Company enters into transactions only
with counterparties that satisfy the Company’s internally established
minimum requirements. Maximum credit risk is confined by credit limits
based on internal and (where available) external credit ratings. The setting
and monitoring of credit limits is subject to certain minimum requirements,
which are based on Group-wide credit risk management guidelines. Long-
term operating contracts and asset management transactions are not
comprehensively included in this process. They are monitored separately at
the level of the responsible units.
In principle, each Group company is responsible for managing credit risk in
its operating activities. Depending on the nature of the operating activities
and the level of credit risk, additional credit risk monitoring and controls are
performed both by the units and by Corporate Headquarters. Regular
reports on credit limits, including their utilization, are submitted to the Risk
Committee. Intensive, standardized monitoring of quantitative and
qualitative early-warning indicators, as well as close monitoring of the
credit quality of counterparties, enable E.ON to act early in order to
minimize risk.
To the extent possible, collateral is negotiated with counterparties for the
purpose of reducing credit risk. Accepted as collateral are primarily
guarantees issued by the respective parent companies, letters of comfort
or evidence of profit and loss transfer agreements in combination with
letters of awareness. To a lesser extent, the Company also requires bank
guarantees and deposits of cash and securities as collateral to reduce credit
risk. Risk management collateral in the forms mentioned above totaling
€4.7 billion (2023: €10.3 billion) was used for setting limits. The continued
stable price level in the wholesale markets throughout 2024, as well as a
reduced limit allocation, led to a further decrease in the collateral to be
accounted for and accordingly considered for some parent companies of
the Company’s counterparties.
Derivative transactions are generally executed on the basis of standard
agreements that allow for the netting of all open transactions with
individual counterparties. To further reduce credit risk, bilateral margining
agreements are entered into with selected banks. Limits, which are
regularly monitored, are imposed on the credit and liquidity risk resulting
from bilateral margining agreements and exchange clearing. The
systematic management of liquidity risk remains an important component
of risk management at E.ON, particularly against the backdrop of the
continued possibility of energy price volatility.
There is no credit risk with respect to the exchange-traded forward and
option contracts with an aggregate nominal value of €22,764 million
(2023: €21,979 million). For the remaining financial instruments, the
maximum risk of default is equal to their nominal amounts.
At E.ON, liquid funds are normally invested at banks with good credit
ratings, in money market funds with first-class ratings or in short-term
securities (for example, commercial paper) of issuers with strong credit
ratings. Bonds of public and private issuers are also selected for
investment. Group companies that for legal reasons are not included in the
cash pool invest money at leading local banks. Standardized credit
assessment and limit-setting is complemented by daily monitoring of CDS
levels at the banks and at other significant counterparties.
Asset Management
For the purpose of financing long-term payment obligations, including
those relating to asset retirement obligations (see Note 25) and cash
investments, financial investments totaling €2.1 billion (2023: €2.3 billion)
were held predominantly by German E.ON Group companies as of
December 31, 2024.
These financial assets are invested on the basis of an accumulation
strategy (total-return approach), with investments broadly diversified
across the various asset classes, for example the money market, bond and
equity asset classes, as well as alternative asset classes like real estate. The
majority of the assets are held in investment funds managed by external
fund managers. Corporate Asset Management at E.ON SE, which is part of
the Company’s Finance Department, is responsible for continuous
monitoring of overall risks and those concerning individual fund managers.
The three-month VaR with a 98 percent confidence interval for these
financial assets was €29 million (2023: €78 million). The decline in the VaR
compared to the previous year is due to a significant reallocation in less
volatile asset classes (money market funds).
The liquidation of Versorgungskasse Energie VVaG (VKE i. L.) was
completed as of December 31, 2024. The financial investments under
management were liquidated.
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
201
(32) Leasing
E.ON as Lessee
E.ON operates as a lessee especially in the areas of networks, land and
buildings, and vehicle fleets. Leases are recognized in accordance with the
right-of-use model as set out in IFRS 16. The tables in Note 14 present the
development of the right-of-use assets by asset class. The net carrying
amount of the rights-of-use assets at the balance sheet date of
December 31, 2024, in the amount of €2,943 million (2023:
€2,710 million) increased year-on-year by €233 million (2023:
€333 million). The increase is primarily attributable to the networks area.
Depreciation of right-of-use assets in the amount of €445 million (2023:
€417 million) showed a slight increase compared with the prior year.
To ensure operational flexibility, in particular for real estate leases as well
as in the area of wastewater disposal, extension and termination options
are included in the agreements. In determining the lease term, all facts and
circumstances that influence the exercise of an extension option or the
non-exercise of a termination option are considered. In the determination
of the lease liability, and correspondingly of the right-of-use assets, all
reasonably certain cash outflows are taken into consideration. As of
December 31, 2024, potential future cash outflows in the amount of
€193 million (2023: €304 million) were not included in the lease liability as
it is not reasonably certain that the leases will be renewed or not
terminated. Possible future cash outflows for lease agreements that can be
terminated without penalty by either party, subject to certain deadlines, are
not included in this amount due to higher levels of uncertainty. Variable
lease payments occur in only immaterial amounts and E.ON generally does
not issue residual value guarantees. Leases not yet commenced to which
E.ON as a lessee is committed result in potential future cash outflows over
the expected lease terms of €55 million (2023: €26 million). ). Most of this
amount relates to Energy Networks Germany. The existing lease liabilities
do not contain any covenant clauses that are linked to financial ratios.
As of the balance sheet date of December 31, 2024, right-of-use assets
are offset by lease liabilities with a present value of €3,191 million (2023:
€2,874 million). These lease liabilities are presented under financial
liabilities (see Note 26); the short-term portion of the lease liabilities totals
€386 million (2023: €371 million). The maturity structure of the future
payment obligations from leases is presented in Note 31. Due to the
practical expedients used, the recognition of a right-of-use asset is not
necessary for low-value leases and leases with a lease term of less than
12 months. Instead, a lease expense is recognized in these cases. The
following amounts are recognized in the income statement in connection
with leases in the fiscal year:
E.ON as Lessee—Effects within the Income Statement
€ in millions
2024
2023
Expenses from short-term leases (< 12 months)
15
37
Expense for low-value leases not included in short-term leases
15
18
Expense from variable lease payments
10
11
Interest expenses on lease liabilities
206
185
Income from subleases
1
–
Gain/loss from sale and leaseback transactions
–
-3
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
202
The liabilities from short-term agreements with a term of less than
12 months entered into for the next fiscal year do not vary materially from
the expenses of the current fiscal year.
Cash outflows from lease agreements totaled €623 million (2023:
€634 million) in the fiscal year and are allocated to operating cash flow in
the amount of €247 million (2023: €251 million). This includes the lease
expense for short-term and low-value leases as well as the expense from
variable lease payments and interest expense for the period. Payments
allocated to the amortization of the lease liability are recognized in cash
flows from financing activities in the amount of €377 million (2023:
€383 million).
E.ON as Lessor
E.ON enters into lease agreements as a lessor to a limited extent. Technical
equipment and machinery, in particular generation plants, have been
transferred to customers for use under finance leases. Operating leases
include assets that have been transferred for use, in particular real estate,
heat and electricity generation plants and transmission lines. There are no
material risks in connection with rights retained to the assets temporarily
transferred for use, with the result that risk management strategies, in
particular, are not necessary. Residual-value guarantees are only entered
into on an individual basis for purposes of additional hedging.
The present value of minimum lease payments is presented under
receivables from finance leases (see Note 17). The current portion totals
€29 million (2023: €29 million). There were no material changes to net
investments in the period under review.
The nominal and present values of the lease payments had the following
maturities:
The following effects from activity as lessor are recognized for the period
under review:
E.ON as Lessor—Effects within the Income Statement
€ in millions
2024
2023
Finance lease
Gain/loss from the disposal of assets
–
1
Financial income from net investments
18
20
Income from variable lease payments
4
2
Operating lease
Income from leasing
95
87
thereof income from variable lease
payments
1
–
Cash flows from operating leases are allocated to operating cash flow
before interest and taxes. This also applies to cash inflows from finance
leases with variable lease payments. Payments recognized as financing
income from net investments increase the operating cash flow.
The following future cash inflows are expected from existing operating
leases:
E.ON as Lessor—Operating Leases
Undiscounted lease payments
€ in millions
2024
2023
Due within 1 year
87
79
Due in 1 to 2 years
74
66
Due in 2 to 3 years
69
61
Due in 3 to 4 years
69
58
Due in 4 to 5 years
65
61
Due in more than 5 years
122
101
Total
486
426
E.ON as Lessor—Finance Leases
Undiscounted lease payments Not yet realized interest income
Discounted non-guaranteed
residual value
Present value of minimum
lease payments
€ in millions
2024
2023
2024
2023
2024
2023
2024
2023
Due within 1 year
48
46
18
17
–
–
29
29
Due in 1 to 2 years
41
49
16
18
–
–
26
32
Due in 2 to 3 years
37
38
14
14
8
–
30
23
Due in 3 to 4 years
36
33
13
13
–
8
23
28
Due in 4 to 5 years
32
32
12
12
9
–
30
20
Due in more than 5 years
134
141
32
33
3
12
104
120
Total
328
339
105
107
20
20
242
252
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
203
(33) Transactions with Related Parties
E.ON exchanges goods and services with a large number of companies as
part of its continuing operations. Some of these companies are related
parties, including associated companies accounted for under the equity
method and their subsidiaries. Receivables and payables consist primarily
of lease obligations from leaseback models and trade receivables. Joint
ventures and subsidiaries that are not fully consolidated continue to be
accounted for as associated companies. Transactions with related parties
in the reporting year and in the previous year are summarized as follows:
Related-Party Transactions
€ in millions
2024
2023
Income
2,262
2,232
Associated companies
1,382
1,587
Joint ventures
600
365
Other related parties
280
280
Expenses
1,465
1,510
Associated companies
635
678
Joint ventures
167
161
Other related parties
663
671
Receivables
847
1,007
Associated companies
352
437
Joint ventures
66
83
Other related parties
428
487
Liabilities
2,481
2,494
Associated companies
1,077
1,090
Joint ventures
799
755
Other related parties
606
648
Provisions
7
7
Associated companies
4
4
Joint ventures
3
3
Other related parties
–
–
In 2024, E.ON generated income from transactions with related companies
through the delivery of gas and electricity to distributors and municipal
entities, especially municipal utilities. The relationships with these entities
do not generally differ from those that exist with municipal entities in
which E.ON does not have an interest. Expenses from transactions with
related companies are generated mainly through electricity and gas
deliveries as well as through management fees, IT services and third-party
services.
10 The expense incurred for short-term benefits in 2023 was adjusted by €1.7 million from €12.5 million to €14.2 million in accordance with IAS 8.41 et seq.
Liabilities of E.ON payable to related companies as of December 31, 2024,
include €51 million (2023: €60 million) in trade payables and shareholder
loans to operators of jointly owned nuclear power plants. These
shareholder loans bear interest at 1.0 percent (2023: 1.0 percent) and have
no fixed maturity. E.ON continues to have in place with these power plants
a cost-transfer agreement and a cost-plus-fee agreement for the
procurement of electricity. The settlement of such liabilities occurs mainly
through clearing accounts.
Under IAS 24, compensation paid to key management personnel (members
of the Management Board and of the Supervisory Board of E.ON SE) in the
reporting year must be disclosed.
The total expense for members of the Management Board in 2024
amounted to €23.0 million (2023: €25.5 million).
The service costs comprised an expense of €11.6 million (2023:
€14.2 million10) for short-term benefits and an expense of €0.1 million
(2023: €0.2 million) for post-employment benefits.
The expense determined in accordance with IFRS 2 for existing
commitments for share-based payment in 2024 was €11.3 million (2023:
€11.0 million).
Provisions for these commitments amounted to €24.3 million as of
December 31, 2024 (2023: €18.0 million).
The members of the Supervisory Board received a compensation of
€4.2 million for their activity in 2024 (2023: €4.6 million).
(34) Segment Reporting
Segment Information
On September 11, 2023, the Management Board approved a new
management concept for the E.ON Group. This concept took effect on
January 1, 2024, and requires a change in the definition of operating
segments in accordance with IFRS 8. The E.ON Group, which is managed
by Group Management in Essen, is divided into the following reporting
segments, which are reported in accordance with IFRS 8. Additionally, as of
January 1, 2024, some regional markets in Energy Networks have been
reorganized. Central Europe East/Turkey is now divided into Central
Eastern Europe and South Eastern Europe. These combined segments are
not separately reportable, are of minor importance, have similar economic
characteristics and are comparable in terms of customer structure,
products and sales channels. Moreover, the central commodity
procurement unit of the E.ON Group, E.ON Energy Markets GmbH, has
been reported in Energy Retail since January 1, 2024. Prior to
December 31, 2023, it was included in Corporate Functions/Other.
Energy Networks
Germany
This segment combines the electricity and gas distribution networks and all
related activities in Germany.
Sweden
This segment comprises the electricity networks businesses in Sweden.
Central Eastern Europe
This segment combines the distribution network activities in the Czech
Republic and Poland and the at-equity investment Východoslovenská
energetika Holding a.s. in Slovakia.
South Eastern Europe
This segment combines the distribution network activities in Hungary,
Croatia and Romania and the at-equity investment Enerjisa Enerji in
Turkey.
Energy Infrastructure Solutions
This segment combines the development of energy solutions for customers
in Germany, the UK, Sweden, Denmark, Italy, the Czech Republic, Hungary,
Poland, the Netherlands, Croatia and Slovenia. The Energy Infrastructure
Solutions segment develops integrated, sustainable energy solutions to
sustainably provide heating, electricity, steam, and cooling to cities and
towns, as well as commercial customers and industrial customers.
Energy Retail
Germany
This segment consists of activities that supply our customers in Germany
with electricity and gas and the distribution of specific products and
services in areas for improving energy efficiency and energy independence
as well as the heating distribution business in Germany.
United Kingdom
The segment presents sales activities and Customer Solutions in the UK.
The Netherlands
The segment includes the distribution of electricity and gas as well as
Customer Solutions in the Netherlands.
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
204
Other
This segment combines sales activities in Sweden, Italy, the Czech
Republic, Hungary, Croatia, Romania, and Poland. The E.ON Group’s central
commodity procurement unit, E.ON Energy Markets GmbH, is also
included here.
Corporate Functions/Other
Corporate Functions/Other contains E.ON SE itself and the interests held
directly by E.ON SE. The main task of Corporate Functions is to manage the
E.ON Group. This includes the strategic development of the Group and the
management and financing of the existing business portfolio. It also
includes the E.ON Group’s internal service providers. In addition, the Non-
Core Business is disclosed under Corporate Functions/Other. The Non-Core
Business includes the non-strategic activities of the E.ON Group. This
includes the operation of German nuclear power plants until April 15,
2023, and their decommissioning, which are managed by the
PreussenElektra operating unit, and the electricity generation business in
Turkey.
Financial Information by Business Segment1
Energy Networks
Energy Infrastructure
Solutions
Energy Retail
Corporate
Functions/Other
Consolidation
E.ON Group
€ in millions
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
External sales
20,691
17,607
2,677
3,003
56,503
72,829
248
247
–
–
80,119
93,686
Intersegment sales
6,256
6,365
1,098
1,049
2,356
3,292
1,043
1,377
-10,753
-12,083
0
0
Sales
26,947
23,972
3,775
4,052
58,859
76,121
1,291
1,624
-10,753
-12,083
80,119
93,686
Adjusted EBITDA
6,868
6,617
558
565
1,813
2,303
-183
-115
-7
–
9,049
9,370
Equity-method earnings
514
528
17
6
9
16
130
179
–
–
670
729
Depreciation and amortization2
-2,510
-2,236
-352
-380
-336
-279
-89
-88
–
–
-3,287
-2,983
Operating cash flow before interest and taxes
6,379
6,063
405
606
1,397
1,154
-841
-598
3
–
7,343
7,225
Investments3
5,834
5,158
969
715
547
440
152
152
-3
-2
7,499
6,463
investments in intangible assets and property, plant and equipment
5,738
5,021
788
609
380
299
68
81
-3
-1
6,971
6,009
1Because of changes in segment reporting, the prior-year figure was adjusted accordingly.
2Adjusted for non-operating effects.
3Adjustment of the previous year's figures due to the expansion of investments to include cash inflows and outflows for loans to affiliated non-consolidated companies as well as other loans.
Financial Information Energy Networks1
Germany
Sweden
Central Eastern Europe2 South Eastern Europe2
Consolidation
Energy Networks
€ in millions
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
External sales
16,905
13,599
1,179
986
970
934
1,637
2,088
–
–
20,691
17,607
Intersegment sales
5,333
5,478
7
5
461
427
457
466
-2
-11
6,256
6,365
Sales
22,238
19,077
1,186
991
1,431
1,361
2,094
2,554
-2
-11
26,947
23,972
Adjusted EBITDA
5,008
5,010
714
576
632
732
514
298
–
1
6,868
6,617
Equity method earnings
341
343
–
–
82
127
91
59
–
-1
514
528
Depreciation and amortization3
-1,933
-1,695
-194
-185
-178
-168
-206
-188
1
–
-2,510
-2,236
Operating cash flow before interest and taxes
4,717
4,450
737
648
597
625
329
341
-1
-1
6,379
6,063
Investments4
4,361
3,752
520
510
463
517
489
379
1
-
5,834
5,158
Investments in intangible assets and property, plant, and equipment
4,266
3,617
519
510
463
516
489
378
1
–
5,738
5,021
1Because of changes in segment reporting, prior-year figures were adjusted accordingly.
2Aggregated and Reportable Segment.
3Adjusted for non-operating effects.
4Adjustment of the previous year's figures due to the expansion of investments to include cash inflows and outflows for loans to affiliated non-consolidated companies as well as other loans.
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
205
Financial Information Energy Retail1
Germany
United Kingdom
The Netherlands
Other
Consolidation
Energy Retail
€ in millions
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
External sales
20,023
23,937
16,476
23,432
2,759
4,201
17,245
21,259
–
–
56,503
72,829
Intersegment sales
7,702
11,157
4,174
8,988
2,960
6,796
27,336
47,314
-39,816
-70,963
2,356
3,292
Sales
27,725
35,094
20,650
32,420
5,719
10,997
44,581
68,573
-39,816
-70,963
58,859
76,121
Adjusted EBITDA
751
858
552
639
192
234
318
571
–
1
1,813
2,303
Equity method earnings
–
–
1
–
5
7
3
9
–
–
9
16
Depreciation and amortization2
-101
-79
-28
-33
-89
-71
-118
-95
–
-1
-336
-279
Operating cash flow before interest and taxes
230
1,226
243
765
74
378
850
-1,213
–
-2
1,397
1,154
Investments3
123
127
10
21
129
86
285
206
–
–
547
440
Investments in intangible assets and property, plant, and equipment
84
85
10
13
94
55
193
146
-1
–
380
299
1Because of changes in segment reporting, prior-year figures were adjusted accordingly.
2Adjusted for non-operating effects.
3Adjustment of the previous year's figures due to the expansion of investments to include cash inflows and outflows for loans to affiliated non-consolidated companies as well as other loans.
The following table shows the reconciliation of operating cash flow before
interest and taxes to operating cash flow from continuing operations:
Reconciliation of Operating Cash Flow1
€ in millions
2024
2023
Operating cash flow before interest and taxes
7,343
7,225
Interest payments
-928
-855
Tax payments
-741
-716
Operating cash flow
5,673
5,654
1Operating cash flow from continuing operations.
Reconciliation of Adjusted EBITDA
In 2024, adjusted EBITDA, a measure of earnings before interest, taxes,
depreciation and amortization adjusted to exclude extraordinary effects
(“adjusted EBITDA”), was used at E.ON for purposes of internal
management control and as the most important indicator of a business’s
sustainable earnings power.
The E.ON Management Board is convinced that adjusted EBITDA is the
most suitable key figure for assessing operating performance because it
presents E.ON’s operating earnings independently of non-operating
factors, interest, taxes and amortization.
Adjusted EBITDA is a non-IFRS measure that must be reconciled to an IFRS
measure in accordance with IFRS 8.
Unadjusted earnings before interest, taxes, depreciation and amortization
(“EBITDA”) represents the Group’s income/loss reported in accordance
with IFRS corrected by net interest income, income taxes and impairment
charges and reversals of impairment charges. To improve its
meaningfulness as an indicator of the sustainable earnings power of the
E.ON Group’s business, unadjusted EBITDA is adjusted for certain non-
operating effects.
Operating earnings also include income from investment subsidies for
which liabilities are recognized.
The non-operating earnings effects for which EBITDA is adjusted include,
in particular, non-operating interest expense/income, income and expenses
from the marking to market on the reporting date of unrealized commodity
derivatives and related provisions for contingent losses, where material,
book gains/losses, certain restructuring expenses, impairment charges and
reversals recognized on equity investments in affiliated or associated
companies, and other contributions to non-operating earnings. IAS 29 was
applied for the first time in 2022 because of the hyperinflation in Turkey
and the effects recognized in income are also presented in other non-
operating earnings.
In addition, effects from the valuation of certain provisions on the balance
sheet date are disclosed in non-operating earnings. In addition, effects that
are to be initially recognized from the subsequent measurement of hidden
reserves and charges in connection with the innogy purchase price
allocation are included.
Net book gains/losses and restructuring expenses were minimal in 2024.
Effects in conjunction with derivative financial instruments changed by
€8,599 million to €4,366 million. They resulted mainly from the settlement
of sales and procurement transactions on derivatives that in the prior year
had a negative fair value. The fair-value measurement of pending sales and
procurement transactions had just a small countervailing effect because
energy prices on commodity markets at December 31, 2024, were again
roughly at the level of the start of the year.
Other non-operating expense/income consists mainly of expenditures in
conjunction with the application of IAS 29 on ownership interests in Turkey
that are accounted for using the equity method. The prior-year figure
included the disclosure of the earnings contribution of PreussenElektra,
whose commercial operations ended on April 15, 2023. In addition, other
non-operating expense/income components of EBITDA include
expenditures for the amortization of hidden reserves and liabilities from the
innogy transaction.
In the 2024 financial year, E.ON recorded depreciation and amortization
charges in connection with the innogy purchase-price allocation, which are
disclosed separately.
It also recorded in particular impairment charges of €628 million at Energy
Infrastructure Solutions. See also “Special Events in the Reporting Period”
regarding this matter.
Non-operating interest expense/income improved relative to the prior year.
An increase in the discount rate led to income from the discounting of non-
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
206
current provisions for asset-retirement obligations. By contrast, expenses
were recorded in the previous year due to a decline in interest rates. The
positive effect of €147 million (prior year: €187 million) from the
difference between the nominal interest rate and the effective interest rate
of former innogy bonds adjusted due to the purchase-price allocation is still
recorded under non-operating interest expense/income.
The non-operating tax result in the period under review is primarily
influenced by tax expenditures stemming from positive effects in
conjunction with derivative financial instruments. In the reporting period,
countervailing effects resulted from tax income from prior years, including
€198 million from a concluded redress procedure, and changes in value of
deferred taxes. In the prior-year period, negative items relating to the
measurement of derivatives as well as changes in value of deferred tax
liabilities led, on balance, to tax income.
Non-controlling interests’ share of operating earnings declined relative to
the prior year. The decrease resulted mainly from lower operating earnings
at some minority-owned companies, in particular at Energy Networks.
Income from discontinued operations resulted from a transaction already
completed in 2005. In accordance with the purchase agreement, a one-
time purchase-price adjustment was made in the prior year after an audit
of the divested company was completed in the first quarter of 2023, and
the contractual clause has now taken effect.
The following table shows the reconciliation of earnings before financial
results and taxes to adjusted EBITDA:
Non-Operating Adjustments
Fourth quarter
Full year
€ in millions
2024
2023
2024
2023
Net book gains (+)/losses (-)
3
12
-15
5
Restructuring expenses
-14
4
-20
-22
Effects from derivative financial instruments
1,932
-1,587
4,366
-4,233
Carryforward of hidden reserves (+) and liabilities (-) from the innogy transaction
-14
13
-56
-100
Other non-operating earnings
25
-219
-509
-237
Non-operating adjustments of EBITDA
1,932
-1,777
3,766
-4,587
Depreciation of hidden reserves (-) and liabilities (+) from the innogy transaction
-95
-107
-413
-448
Other non-operating impairments/reversals
-81
-112
-782
-156
Non-operating interest expense (-)/income (+)
55
-514
139
-12
Non-operating taxes
-151
1,539
-614
1,922
Non-operating adjustments of net income/loss
1,660
-971
2,096
-3,281
Reconciliation to Adjusted EBITDA
Fourth quarter
Full year
€ in millions
2024
2023
2024
2023
Adjusted EBITDA
2,362
1,581
9,049
9,370
Non-operating adjustments of EBITDA
1,932
-1,777
3,766
-4,587
Income/loss from continuing operations before depreciation, interest result and income taxes
4,294
-196
12,815
4,783
Scheduled depreciation/impairments and amortization/reversals
-1,144
-1,076
-4,483
-3,588
Income/loss from continuing operations before interest results and income taxes
3,150
-1,272
8,332
1,195
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
207
Additional Entity-Level Disclosures
External sales by product break down as follows:
Segment Information by Product
€ in millions
2024
2023
Electricity
53,501
57,791
Gas
19,888
23,977
Other
6,730
11,918
Total
80,119
93,686
The “Other” item consists in particular of revenues generated from
services.
External sales of the products electricity and gas recognized under IFRS 15
are broken down by reportable segment as follows:
Electricity1
€ in millions
2024
2023
Energy Networks
16,025
12,855
Germany
12,630
9,491
Sweden
1,179
985
Central Eastern Europe
911
762
South Eastern Europe
1,305
1,617
Energy Infrastructure Solutions
383
514
Energy Retail
37,093
44,324
Germany
14,335
15,645
United Kingdom
12,304
14,732
The Netherlands
986
1,324
Other
9,468
12,623
Corporate Functions/Other
–
98
E.ON Group
53,501
57,791
1Because of changes in segment reporting, prior-year figures were adjusted accordingly.
Gas1
€ in millions
2024
2023
Energy Networks
1,773
2,199
Germany
1,583
2,038
Sweden
–
–
Central Eastern Europe
27
23
South Eastern Europe
163
138
Energy Infrastructure Solutions
82
124
Energy Retail
18,033
21,654
Germany
5,337
7,704
United Kingdom
4,072
4,846
The Netherlands
1,365
1,640
Other
7,259
7,464
Corporate Functions/Other
–
–
E.ON Group
19,888
23,977
1Because of changes in segment reporting, prior-year figures were adjusted accordingly.
Consolidated Financial Statements → Notes
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E.ON Integrated Annual Report 2024
208
The following table breaks down external sales (by customer and seller
location), intangible assets and property, plant and equipment, as well as
companies accounted for under the equity method, by geographic area:
E.ON’s customer structure resulted in a focus on the Germany region.
Aside from that, there was no major concentration in any given
geographical region or business area. Due to the large number of
customers the Company serves and the variety of its business activities,
there are no individual customers whose business volume is material
compared with the Company’s total business volume.
(35) Compensation of Supervisory Board and Management
Board
Supervisory Board
Total remuneration to members of the Supervisory Board in 2024
amounted to €4.2 million (2023: €4.6 million).
There were no loans to members of the Supervisory Board in 2024.
11 The total compensation granted to the Management Board for 2023 was adjusted by €1.8 million from €20.2 million to €22.0 million in accordance with IAS 8.41 et seq.
12 The total payments to former members of the Management Board and their beneficiaries for 2023 was adjusted by €3.4 million from €16.3 million to €12.9 million in accordance with IAS 8.41 et seq.
Management Board
The compensation of the Management Board according to Section 314 (1)
No. 6 HGB combined with Section 315 e HGB in 2024 amounted to
€19.3 million (2023: €22.0 million11).
In 2024, the members of the Management Board were granted eighth-
tranche virtual shares under the E.ON Performance Plan (2023: seventh
tranche of the E.ON Performance Plan) with a value of €7.8 million (2023:
€7.8 million) and a total number of shares of 650,587 (2023: 832,082) as
part of their total compensation.
The total payments to former members of the Management Board and
their beneficiaries amounted to €13.0 million (2023: €12.9 million12).
Provisions of €162.4 million (2023: €170.6 million) have been established
for the pension obligations to former members of the Management Board
and their beneficiaries.
There were no loans to members of the Management Board in 2024.
(36) Subsequent Events
Corporate Bonds Issued
E.ON issued two corporate bonds in January 2025. One bond has a volume
of €850 million due in April 2033 with a 3.5 percent coupon; the other
green bond has a volume of €900 million due in January 2040 with a
4.0 percent coupon.
Geographic Segment Information
Germany
United Kingdom
Sweden
The Netherlands1
Europe (other)
Other
Total
€ in millions
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
External sales by location of customer
41,456
37,497
16,593
33,145
2,238
2,191
2,746
1,365
16,992
19,389
94
99
80,119
93,686
External sales by location of seller
47,242
50,142
17,020
24,054
2,284
2,246
2,785
4,201
10,694
12,944
94
99
80,119
93,686
Intangible assets
1,471
1,497
140
137
205
193
197
177
1,698
1,588
–
–
3,711
3,592
Right-of-use assets
2,494
2,301
107
96
87
92
88
79
163
137
4
5
2,943
2,710
Property, plant and equipment
31,145
28,545
1,027
796
5,581
5,453
138
80
6,369
5,867
9
8
44,269
40,749
Companies accounted for under the
equity method
4,394
4,284
6
4
65
71
–
55
1,889
2,238
757
–
7,111
6,652
1Belgium included in Europe (other) segment.
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E.ON Integrated Annual Report 2024
209
Declaration of the Board of Management
210
Independent auditor’s report
211
Assurance Report in Relation to the Group Sustainability
Report
216
Boards
219
Supervisory Board
(and Information on Other Directorships)
219
Management Board
(and Information on Other Directorships)
221
Task Force on Climate-related Financial Disclosures
(“TCFD”)
224
ESG Figures
225
Sustainable Development Goals (“SDGs”) Index
230
Financial Calendar and Imprint
230
Other Information
Other Information → Declaration of the Management Board
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E.ON Integrated Annual Report 2024
210
Declaration of the Board of Management
To the best of our knowledge, we declare that, in accordance with applicable financial reporting principles, the Annual Financial Statements give a true and
fair view of the assets, liabilities, financial position and profit or loss of the Company, and the Management Report of the Company, which is combined
with the Group Management Report, provides a fair review of the development and performance of the business and the position of the Company,
together with a description of the principal opportunities and risks associated with the expected development of the Company.
Essen, Germany, February 19, 2025
The Management Board
Birnbaum
Jakobi
König
Ossadnik
Spieker
Other Information → Independent Auditor’s Report
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E.ON Integrated Annual Report 2024
211
Independent auditor’s report
To E.ON SE, Essen
Report on the Audit of the Consolidated Financial
Statements and the Combined Group Management Report
Opinions
We have audited the consolidated financial statements of E.ON SE, Essen,
and its subsidiaries (the Group), which comprise the statement of income,
the statement of recognised income and expenses, the balance sheet, the
statement of cash flows and the statement of changes in equity for the
financial year from 1 January to 31 December 2024, and notes to the
consolidated financial statements, including significant information on the
accounting policies. In addition, we have audited the management report of
the Company and the Group (hereinafter referred to as “combined
management report”) of E.ON SE for the financial year from 1 January to
31 December 2024.
In accordance with German legal requirements, we have not audited the
content of those components of the combined management report
specified in the "Other Information" section of our auditor's report.
In our opinion, on the basis of the knowledge obtained in the audit,
• the accompanying consolidated financial statements comply, in all
material respects, with the IFRS Accounting Standards issued by the
International Accounting Standards Board (IASB) (hereinafter referred to
as “IFRS Accounting Standards”) as adopted by the EU, and the
additional requirements of German commercial law pursuant to
Section 315e (1) HGB [Handelsgesetzbuch: German Commercial Code]
and, in compliance with these requirements, give a true and fair view of
the assets, liabilities, and financial position of the Group as at
31 December 2024, and of its financial performance for the financial
year from 1 January to 31 December 2024, and
• the accompanying combined management report as a whole provides an
appropriate view of the Group's position. In all material respects, this
combined management report is consistent with the consolidated
financial statements, complies with German legal requirements and
appropriately presents the opportunities and risks of future
development. Our opinion on the combined management report does not
cover the content of those components of the combined management
report specified in the "Other Information" section of the auditor's
report.
Pursuant to Section 322 (3) sentence 1 HGB, we declare that our audit has
not led to any reservations relating to the legal compliance of the
consolidated financial statements and of the combined management
report.
Basis for the Opinions
We conducted our audit of the consolidated financial statements and of the
combined management report in accordance with Section 317 HGB and
the EU Audit Regulation No 537/2014 (referred to subsequently as "EU
Audit Regulation") and in compliance with German Generally Accepted
Standards for Financial Statement Audits promulgated by the Institut der
Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Our
responsibilities under those requirements and principles are further
described in the "Auditor's Responsibilities for the Audit of the
Consolidated Financial Statements and of the Combined Management
Report" section of our auditor's report. We are independent of the group
entities in accordance with the requirements of European law and German
commercial and professional law, and we have fulfilled our other German
professional responsibilities in accordance with these requirements. In
addition, in accordance with Article 10 (2) (f) of the EU Audit Regulation,
we declare that we have not provided non-audit services prohibited under
Article 5 (1) of the EU Audit Regulation. We believe that the evidence we
have obtained is sufficient and appropriate to provide a basis for our
opinions on the consolidated financial statements and on the combined
management report.
Key Audit Matters in the Audit of the Consolidated Financial
Statements
Key audit matters are those matters that, in our professional judgement,
were of most significance in our audit of the consolidated financial
statements for the financial year from 1 January to 31 December 2024.
These matters were addressed in the context of our audit of the
consolidated financial statements as a whole, and in forming our opinion
thereon, we do not provide a separate opinion on these matters.
Accounting for derivatives relating to sales and procurement
contracts for electricity and gas supplies (commodity forward
transactions) and provisions for sales-related onerous contracts
Please refer to note [1] in the notes to the consolidated financial
statements for information on the accounting policies applied. The
disclosures on accounting for derivatives relating to sales and procurement
contracts for electricity and gas supplies (commodity forward transactions)
and provisions for sales-related onerous contracts are presented in the
notes to the consolidated financial statements under notes [8], [17], [25]
and [26].
THE FINANCIAL STATEMENT RISK
In the consolidated financial statements as at 31 December 2024, E.ON SE
recognised market values for derivatives in connection with commodity
forward transactions of EUR 3.0 billion in the other operating assets, and
market values of EUR 2.6 billion in the non-current and current (other)
operating liabilities for procurement and sales transactions that are
accounted for at fair value in accordance with the provisions of IFRS 9:
Financial Instruments. Provisions for onerous contracts were reported in
the amount of EUR 0.1 billion.
E.ON maintains portfolios of sales and procurement contracts for
electricity and gas supplies with various customer and supplier groups
(commodity forward transactions), of which some are recognised as
executory contracts pursuant to the own-use provisions of IFRS 9 in
accordance with the provisions of IAS 37 and some are recognised as
financial instruments at fair value. The contracts in these portfolios are
predominantly recorded and processed by way of mass processes.
Discretion is required when determining whether a commodity forward
transaction was concluded to satisfy own requirements and continues to
be held for this purpose and therefore fulfils the own-use criteria on initial
and subsequent recognition. In compliance with the requirements of
IFRS 9, the underlying contracts are to be classified as "own use" contracts
or as derivative financial instruments and monitored on an ongoing basis.
With regard to the consolidated financial statements, there is a risk that
these may be incompletely or incorrectly recognised and/or incorrectly
classified. There is also the risk that a change in purpose at a later date will
not be recognised and the contracts will not be properly accounted for.
Fair values are to be determined for the commodity forward transactions
classified as derivative financial instruments. Provided that no market
prices are observable, the fair values are to be determined on the basis of
recognised valuation methods. The methods, assumptions and data used
for this purpose require judgement. There is a risk for the financial
statements that the other operating assets, the (other) operating liabilities
and the other operating income will not be measured or determined in line
with the accounting requirements.
In the context of its business activities, E.ON fulfils its sales obligations
towards customers through commodity forward transactions. If there is a
risk of losses from sales obligations, provisions for onerous contracts must
be recognised. The amount of the provisions is determined based on the
best possible estimate of the amount by which the unavoidable costs of
fulfilling the contract will exceed the expected economic benefit of the
contract, i.e. generally the agreed sales price for sales transactions. A direct
allocation of procurement transactions to individual sales obligations is
generally not possible for electricity and gas supply companies and thus
also not possible within the E.ON Group. The recognition and measurement
of recognised provisions for onerous contracts from pending sales
transactions – in due consideration of the various procurement
transactions of the E.ON Group – are consequently based on complex
allocations and calculations for the sales portfolios of the E.ON Group as
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E.ON Integrated Annual Report 2024
212
well as estimates requiring judgement by the Management Board, for
example, the future expected contribution margins of the sales portfolios.
There is the risk for the consolidated financial statements that provisions
are not recognised or not in the amount required.
OUR AUDIT APPROACH
In the course of our audit, we obtained a comprehensive insight into the
development of commodity forward transactions and the associated risks
as well as an understanding of E.ON's process to record and classify these
transactions and to recognise and assess sales from the portfolio in terms
of the permissibility of the own-use criteria.
For the IT and individual data processing systems deployed, with the
involvement of our IT specialists, we evaluated the effectiveness of the
rules and procedures relating to a large number of IT applications and
which support the effectiveness of the application controls.
With the involvement of our specialists for financial instruments, we
assessed the appropriateness, implementation and effectiveness of the
internal controls established by E.ON to recognise and classify commodity
forward transactions and to completely and accurately recognise and
assess sales from the portfolio in terms of the permissibility of the own-use
criteria.
We used analyses to satisfy ourselves that the commodity forward
transactions were properly recognised and classified. In the case of sales,
we assessed whether there was a change in purpose and whether it was
recognised in the balance sheet appropriately.
Furthermore, with regard to the measurement of commodity forward
transactions for which no market prices are observable, we made enquiries
with the involvement of our valuation specialists and gained insight into
the relevant documents and, in doing so, assessed the selection of
methods, data and assumptions used for measurement. To assess the
methodically and mathematically correct implementation of the valuation
method, we – together with the involvement of our valuation experts
– verified E.ON's measurement using our own calculations and analysed
deviations for a risk-based selection. Price and market information
observable in the market were used where possible.
In addition, we assessed the appropriateness of the key data and
assumptions as well as the method used by E.ON in relation to the
recognition of provisions for onerous contracts for sales portfolios. To this
end, we verified the allocations of the procurement transactions to the
sales portfolios and also discussed the expected future contribution
margins in the various sales portfolios of the E.ON Group with those
responsible for planning. To ensure the computational accuracy of the
method used, we verified the Company's calculations on the basis of
selected risk-based elements.
OUR OBSERVATIONS
The recognition, classification and ongoing monitoring of commodity
forward transactions has been carried out appropriately. The methods,
assumptions and data used to measure commodity forward transactions
and provisions for onerous contracts are appropriate.
Recoverability of goodwill
Please refer to note [1] of the notes to the consolidated financial
statements for information on the accounting policies applied. Disclosures
on the assumptions made and the amount of goodwill can be found under
note [14] of the notes to the consolidated financial statements and
disclosures on the financial performance of the operating segments in
section [34] of the combined management report.
THE FINANCIAL STATEMENT RISK
Goodwill amounts to EUR 16.6 billion as at 31 December 2024 and, at
69% of consolidated equity, constitutes a significant proportion of the
assets.
Goodwill is tested for impairment annually, irrespective of any indication of
impairment, as at 1 October. If impairment triggers arise during the year,
an event-driven goodwill impairment test is carried out during the year.
The goodwill is allocated to the cash-generating units or groups of cash-
generating units, which essentially correspond to the operating segments
at the E.ON Group. For the goodwill impairment test, the carrying amount
is compared with the recoverable amount of the relevant cash-generating
units or groups of cash-generating units. If the carrying amount exceeds
the recoverable amount, an impairment loss is recognised. At E.ON, the
recoverable amount is initially calculated as the fair value less costs to sell.
The change in the management concept adopted by E.ON's Management
Board in the previous year took effect on 1 January 2024 and goodwill was
reallocated for the affected operating segments. As the Energy
Infrastructure Solutions operating segment is significantly more capital-
intensive than the Energy Retail operating segment, the recoverable
amount of the Energy Infrastructure Solutions operating segment was
offset by a high carrying amount basis. As a result, in addition to the annual
goodwill impairment test, the company also carried out an event-driven
impairment test as at 1 January 2024 following the goodwill reallocation.
The goodwill impairment test is complex and based on a number of
assumptions requiring judgement. These include the estimate of future
cash flows, the assumed long-term growth rates and the discount rate
used. This also affects the reallocation of goodwill as at 1 January 2024, as
this was carried out on the basis of fair value less costs to sell.
As a result of the event-driven impairment test carried out, the Company
identified a need to recognise impairment in the amount of EUR 0.6 billion
for goodwill in the Energy Infrastructure Solutions operating segment. No
further requirement to recognise an impairment loss was identified in the
course of the annual impairment testing.
There is the risk for the consolidated financial statements that the
impairment loss identified in the Energy Infrastructure Solutions operating
segment is not recognised in the proper amount or that an additional
impairment was not identified. There is also the risk that the related
disclosures in the notes are not appropriate.
OUR AUDIT APPROACH
First, we obtained an understanding of the process for impairment testing
and reallocation of goodwill through explanations provided by staff of the
finance organisation and by evaluating the Company’s documentation.
With the involvement of our valuation experts, we assessed (among other
things) the appropriateness of the significant assumptions and the
Company's calculation method for both the reallocation of goodwill as well
as the event-driven and the annual impairment testing. For this purpose,
we discussed the expected cash flows and the assumed long-term growth
rates with those responsible for planning. We also carried out
reconciliations with the budget drawn up by the Management Board and
approved by the Supervisory Board and the medium-term planning,
including the projected development for the next three to five years, drawn
up by the Management Board and acknowledged by the Supervisory
Board. In addition, we assessed the consistency of the assumptions with
external market forecasts.
We also confirmed the accuracy of the Company's previous forecasts by
comparing the budgets of previous financial years with actual results and
by analysing deviations. In addition, we compared the assumptions and
data underlying the weighted average cost of capital, especially the risk-
free interest rate, the market risk premium, country risk premium and the
beta factor, with our own assumptions and publicly available data.
To assess the methodically and mathematically correct implementation of
the valuation method, we selected risk-based valuations performed by the
Company and verified them using our own calculations and analysed
deviations.
In order to take account of the existing forecast uncertainty and the early
cut-off date for annual impairment testing, we investigated the impact of
possible changes in the discount rate, earnings performance and the long-
term growth rate on the recoverable amount by calculating alternative
scenarios and comparing them with the values stated by the Company
(sensitivity analysis).
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E.ON Integrated Annual Report 2024
213
Finally, we assessed whether the disclosures in the notes regarding
recoverability of goodwill are appropriate. This also included an
assessment of the appropriateness of disclosures in the notes according to
IAS 36.134(f) on sensitivity in the event of a reasonably possible change in
the key assumptions used for measurement.
OUR OBSERVATIONS
The reallocation of goodwill to the Energy Infrastructure Solutions
operating segment was carried out properly.
The calculation model underlying both the events-driven and the annual
impairment testing of goodwill is appropriate and consistent with the
applicable measurement principles.
The Company's assumptions and data underlying the measurement are
appropriate.
The disclosures in the notes on the recoverability of goodwill are
appropriate.
Other Information
The Management Board and/or the Supervisory Board are/is responsible
for the other information. The other information comprises the following
components of the combined management report, whose content was not
audited:
• the sustainability report, including the Group's non-financial statement,
contained in the combined management report,
• the combined corporate governance statement for the Company and the
Group referred to in the combined management report, and
• information extraneous to management reports and marked as
unaudited.
The other information also includes the remaining parts of the annual
report. The other information does not include the consolidated financial
statements, the combined management report information audited for
content and our auditor's report thereon.
Our opinions on the consolidated financial statements and on the combined
management report do not cover the other information, and consequently
we do not express an opinion or any other form of assurance conclusion
thereon.
In connection with our audit, our responsibility is to read the other
information and, in so doing, to consider whether the other information
• is materially inconsistent with the consolidated financial statements,
with the combined group management report information audited for
content or our knowledge obtained in the audit, or
• otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a
material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
Responsibility of the Management Board and Supervisory
Board for the Consolidated Financial Statements and the
Combined Management Report
The Management Board is responsible for the preparation of consolidated
financial statements that comply, in all material respects, with IFRS
Accounting Standards as adopted by the EU and the additional
requirements of German commercial law pursuant to
Section 315e (1) HGB and that the consolidated financial statements, in
compliance with these requirements, give a true and fair view of the assets,
liabilities, financial position, and financial performance of the Group. In
addition, the Management Board is responsible for such internal control as
they have determined necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether
due to fraud (i.e., fraudulent financial reporting and misappropriation of
assets) or error.
In preparing the consolidated financial statements, the Management Board
is responsible for assessing the Group's ability to continue as a going
concern. They also have the responsibility for disclosing, as applicable,
matters related to going concern. In addition, they are responsible for
financial reporting based on the going concern basis of accounting unless
there is an intention to liquidate the Group or to cease operations, or there
is no realistic alternative but to do so.
Furthermore, the Management Board is responsible for the preparation of
the combined management report that, as a whole, provides an appropriate
view of the Group's position and is, in all material respects, consistent with
the consolidated financial statements, complies with German legal
requirements, and appropriately presents the opportunities and risks of
future development. In addition, the Management Board is responsible for
such arrangements and measures (systems) as it has considered necessary
to enable the preparation of a combined management report that is in
accordance with the applicable German legal requirements, and to be able
to provide sufficient appropriate evidence for the assertions in the
combined management report.
The Supervisory Board is responsible for overseeing the Group's financial
reporting process for the preparation of the consolidated financial
statements and of the combined management report.
Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements and of the Combined Management
Report
Our objectives are to obtain reasonable assurance about whether the
consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error, and whether the combined
management report as a whole provides an appropriate view of the Group’s
position and, in all material respects, is consistent with the consolidated
financial statements and the knowledge obtained in the audit, complies
with the German legal requirements and appropriately presents the
opportunities and risks of future development, as well as to issue an
auditor’s report that includes our opinions on the consolidated financial
statements and on the combined management report.
Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with Section 317 HGB and the EU
Audit Regulation and in compliance with German Generally Accepted
Standards for Financial Statement Audits promulgated by the Institut der
Wirtschaftsprüfer (IDW) will always detect a material misstatement.
Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these
consolidated financial statements and this combined management report.
We exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
consolidated financial statements and of the combined management
report, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinions. The risk of
not detecting a material misstatement resulting from fraud is higher
than the risk of not detecting a material misstatement resulting from
error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal controls.
• Obtain an understanding of internal control relevant to the audit of the
consolidated financial statements and of arrangements and measures
relevant to the audit of the combined management report in order to
design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control or of these arrangements and measures.
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E.ON Integrated Annual Report 2024
214
• Evaluate the appropriateness of accounting policies used by the
Management Board and the reasonableness of estimates made by the
Management Board and related disclosures.
• Conclude on the appropriateness of the Management Board's use of the
going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group's ability to
continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in the auditor's report to the
related disclosures in the consolidated financial statements and in the
combined management report or, if such disclosures are inadequate, to
modify our respective opinions. Our conclusions are based on the audit
evidence obtained up to the date of our auditor's report. However, future
events or conditions may cause the Group to cease to be able to continue
as a going concern.
• Evaluate the overall presentation, structure and content of the
consolidated financial statements, including the disclosures, and
whether the consolidated financial statements present the underlying
transactions and events in a manner that the consolidated financial
statements give a true and fair view of the assets, liabilities, financial
position and financial performance of the Group in compliance with IFRS
Accounting Standards as adopted by the EU and the additional
requirements of German commercial law pursuant to
Section 315e (1) HGB.
• Plan and perform the audit of the consolidated financial statements to
obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business segments within the Group to
provide a basis for our opinions on the consolidated financial statements
and on the combined management report. We are responsible for the
direction, supervision and performance of the group audit. We remain
solely responsible for our opinions.
• Evaluate the consistency of the combined management report with the
consolidated financial statements, its conformity with [German] law, and
the view of the Group's position it provides.
• Perform audit procedures on the prospective information presented by
the Board of Management in the combined group management report.
On the basis of sufficient appropriate audit evidence we evaluate, in
particular, the significant assumptions used by the Board of
Management as a basis for the prospective information, and evaluate the
proper derivation of the prospective information from these
assumptions. We do not express a separate opinion on the prospective
information and on the assumptions used as a basis. There is a
substantial unavoidable risk that future events will differ materially from
the prospective information.
We communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that
we identify during our audit.
We also provide those charged with governance with a statement that we
have complied with the relevant independence requirements, and
communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable,
the actions taken or safeguards applied to eliminate independence threats.
From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the
consolidated financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor's report
unless law or regulation precludes public disclosure about the matter.
Other Legal and Regulatory Requirements
Report on the Assurance of the Electronic Rendering of the
Consolidated Financial Statements and the Combined
Management Report Prepared for Publication Purposes in
Accordance with Section 317 (3a) HGB
We have performed assurance work in accordance with Section
317 (3a) HGB to obtain reasonable assurance about whether the rendering
of the consolidated financial statements and the combined management
report (hereinafter the "ESEF documents") contained in the electronic files
„eonse-2024-12-31-de.zip“ (SHA256-hash value:
39083eced63beec2d5f4aa2d3a0fa98ab1ed3675a53d44912557e069e9
6cb4a5) and „EON_Zusammengefasster Lagebericht_2024.xhtml“
(SHA256-hash value:
23749379c02ce86b9972778de876d476b0dc5bf6e6fa0558ab9771cc5
bb2358f) made available and prepared for publication purposes complies
in all material respects with the requirements of Section 328 (1) HGB for
the electronic reporting format ("ESEF format"). In accordance with
German legal requirements, this assurance work extends only to the
conversion of the information contained in the consolidated financial
statements and the combined management report into the ESEF format
and therefore relates neither to the information contained in these
renderings nor to any other information contained in the file identified
above.
In our opinion, the rendering of the consolidated financial statements and
the combined management report contained in the electronic file made
available, identified above and prepared for publication purposes complies
in all material respects with the requirements of Section 328 (1) HGB for
the electronic reporting format. Beyond this assurance opinion and our
audit opinion on the accompanying consolidated financial statements and
the accompanying combined management report for the financial year
from 1 January to 31 December 2024 contained in the "Report on the
Audit of the Consolidated Financial Statements and the Combined
Management Report" above, we do not express any assurance opinion on
the information contained within these renderings or on the other
information contained in the file identified above.
We conducted our assurance work on the rendering of the consolidated
financial statements and the combined management report contained in
the file made available and identified above in accordance with
Section 317 (3a) HGB and the IDW Assurance Standard: Assurance Work
on the Electronic Rendering of Financial Statements and Management
Reports Prepared for Publication Purposes in Accordance with
Section 317 (3a) HGB (IDW AsS 410 (06.2022)). Our responsibility in
accordance therewith is further described below. Our audit firm applies the
IDW Standard on Quality Management 1: Requirements for Quality
Management in Audit Firms (IDW QMS 1 (09.2022)).
The Company's Management Board is responsible for the preparation of
the ESEF documents including the electronic rendering of the consolidated
financial statements and the combined management report in accordance
with Section 328 (1) sentence 4 item 1 HGB and for the tagging of the
consolidated financial statements in accordance with Section 328 (1)
sentence 4 item 2 HGB.
In addition, the Company's Management Board is responsible for such
internal control as it has considered necessary to enable the preparation of
ESEF documents that are free from material intentional or unintentional
non-compliance with the requirements of Section 328 (1) HGB for the
electronic reporting format.
The Supervisory Board is responsible for overseeing the process of
preparing the ESEF documents as part of the financial reporting process.
Our objective is to obtain reasonable assurance about whether the ESEF
documents are free from material intentional or unintentional non-
compliance with the requirements of Section 328 (1) HGB. We exercise
professional judgement and maintain professional scepticism throughout
the assurance work. We also:
• Identify and assess the risks of material intentional or unintentional non-
compliance with the requirements of Section 328 (1) HGB, design and
perform assurance procedures responsive to those risks, and obtain
assurance evidence that is sufficient and appropriate to provide a basis
for our assurance opinion.
• Obtain an understanding of internal control relevant to the assurance on
the ESEF documents in order to design assurance procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an assurance opinion on the effectiveness of these controls.
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E.ON Integrated Annual Report 2024
215
• Evaluate the technical validity of the ESEF documents, i.e. whether the
file made available containing the ESEF documents meets the
requirements of the Commission Delegated Regulation (EU) 2019/815,
as amended as at the reporting date, on the technical specification for
this electronic file.
• Evaluate whether the ESEF documents provide an XHTML rendering
with content equivalent to the audited consolidated financial statements
and the audited combined management report.
• Evaluate whether the tagging of the ESEF documents with Inline XBRL
technology (iXBRL) in accordance with the requirements of Articles 4
and 6 of the Commission Delegated Regulation (EU) 2019/815, as
amended as at the reporting date, enables an appropriate and complete
machine-readable XBRL copy of the XHTML rendering.
Further Information pursuant to Article 10 of the EU Audit
Regulation
We were elected as auditor of the consolidated financial statements at the
Annual General Meeting on 16 May 2024. We were engaged by the Audit
and Risk Committee of the Supervisory Board on 17 December 2024. We
have been the auditor of the consolidated financial statements of E.ON SE
without interruption since financial year 2021.
We declare that the opinions expressed in this auditor's report are
consistent with the additional report to the Audit Committee pursuant to
Article 11 of the EU Audit Regulation (long-form audit report).
Other Matter – Use of the Auditor’s Report
Our auditor's report must always be read together with the audited
consolidated financial statements and the audited combined management
report as well as the examined ESEF documents. The consolidated financial
statements and combined management report converted to the ESEF
format – including the versions to be entered in the German Company
Register [Unternehmensregister] – are merely electronic renderings of the
audited consolidated financial statements and the audited combined
management report and do not take their place. In particular, the ESEF
report and our assurance opinion contained therein are to be used solely
together with the examined ESEF documents provided in electronic form.
German Public Auditor Responsible for the Engagement
The German Public Auditor responsible for the engagement is Alexander
Bock.
Essen, 24 February 2025
KPMG AG
Wirtschaftsprüfungsgesellschaft
[signature] Kneisel
[signature] Bock
Wirtschaftsprüfer
Wirtschaftsprüfer
[German Public Auditor]
[German Public Auditor]
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E.ON Integrated Annual Report 2024
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Assurance Report in Relation to the Group Sustainability
Report
Assurance report of the independent German Public
Auditor on an assurance engagement to obtain limited and
reasonable assurance in relation to the Group Sustainability
Report13
To the E.ON SE, Essen
Assurance Conclusion and Opinion
We have conducted a limited assurance engagement on the Group
Sustainability Report (hereinafter: “Sustainability Report”) included in
section “Sustainability Report” of the combined management report, of
E.ON SE (hereinafter: “E.ON SE” or “the Company”) for the financial year
from January 1 to December 31, 2024, taking into account, as set forth in
the subsequent paragraph, the reasonable assurance engagement on
disclosures marked with [+] in the Group Sustainability Report. The Group
Sustainability Report was prepared to fulfil the requirements of Directive
(EU) 2022/2464 of the European Parliament and of the Council of 14
December 2022 (Corporate Sustainability Reporting Directive, CSRD) and
Article 8 of Regulation (EU) 2020/852 as well as Articles 315b and 315c of
the HGB [Handelsgesetzbuch: German Commercial Code] for a group non-
financial statement and Articles 289b until 289e of the HGB for a non-
financial statement of the parent.
Based on our engagement, we have conducted a reasonable assurance
engagement on the disclosures marked with [+] in the Group Sustainability
Report. A reasonable assurance engagement on these disclosures fulfils
the requirements for a limited assurance engagement and, in accordance
with paragraph 60 of the preamble to the CSRD, thereby complies with the
requirements of the CSRD relating to assurance of the Group Sustainability
Report.
Based on the procedures performed and the evidence obtained as part of
our limited assurance engagement, nothing has come to our attention that
causes us to believe that the accompanying Group Sustainability Report,
taking into account the disclosures in the Group Sustainability Report
marked with [+] and subject to a reasonable assurance engagement, is not
prepared, in all material respects, in accordance with the requirements of
the CSRD and Article 8 of Regulation (EU) 2020/852, Articles 315b and
315c HGB for a group non-financial statement, Articles 289b until 289e of
the HGB for a non-financial statement of the parent, as well as with the
supplementary criteria presented by the executive directors of the
13The English language text below is a translation provided for information purposes only. The original German text shall prevail in the event of any discrepancies between the English translation and the German original. We do not accept any liability for the use of, or reliance on, the English translation or for any
errors or misunderstandings that may arise from the translation.
Company. This assurance conclusion includes that no matters have come
to our attention that cause us to believe that:
• that the accompanying Group Sustainability Report does not comply, in
all material respects, with the European Sustainability Reporting
Standards (ESRS), including that the process carried out by the entity to
identify information to be included in the Group Sustainability Report
(the materiality assessment) is not, in all material respects, in accordance
with the description set out in section “E.ONs Approach to
Sustainability” of the Group Sustainability Report, or
• that the disclosures in the Group Sustainability Report in section “EU-
Taxonomy” do not comply, in all material respects, with Article 8 of
Regulation (EU) 2020/852.
In our opinion, on the basis of our reasonable assurance engagement, the
disclosures marked with [+] in the Group Sustainability Report were
prepared, in all material respects, in accordance with the requirements
applicable to these disclosures and the supplementary criteria presented by
the executive directors of the Company.
Basis for the Assurance Conclusion and Opinion
We conducted our assurance engagement in accordance with the
International Standard on Assurance Engagements (ISAE) 3000 (Revised):
Assurance Engagements Other Than Audits or Reviews of Historical
Financial Information issued by the International Auditing and Assurance
Standards Board (IAASB).
The procedures in a limited assurance engagement vary in nature and
timing from, and are less in extent than for, a reasonable assurance
engagement. Consequently, the level of assurance obtained is substantially
lower than the assurance that would have been obtained had a reasonable
assurance engagement been performed.
Our responsibilities under ISAE 3000 (Revised) are further described in the
section "German Public Auditor's Responsibilities for the Assurance
Engagement on the Group Sustainability Report".
We are independent of the entity in accordance with the requirements of
European law and German commercial and professional law, and we have
fulfilled our other German professional responsibilities in accordance with
these requirements. Our audit firm has applied the requirements for a
system of quality control as set forth in the IDW Quality Management
Standard issued by the Institut der Wirtschaftsprüfer [Institute of Public
Auditors in Germany] (IDW): Requirements for Quality Management in the
Audit Firm (IDW QMS 1 (09.2022)).
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our assurance conclusion and opinion.
Responsibility of the Executive Directors and the Supervisory
Board for the Group Sustainability Report
The executive directors are responsible for the preparation of the Group
Sustainability Report in accordance with the requirements of the CSRD and
the applicable German legal and other European requirements as well as
with the supplementary criteria presented by the executive directors of the
Company and for the design, implementation and maintenance of such
internal control that they have considered necessary to enable the
preparation of the Group Sustainability Report in accordance with these
requirements that is free from material misstatement, whether due to
fraud (i.e., fraudulent sustainability reporting of the Sustainability Report)
or error.
This responsibility of the executive directors includes establishing and
maintaining the materiality assessment process, selecting and applying
appropriate reporting policies for preparing the Group Sustainability
Report, as well as making assumptions and estimates and ascertaining
forward-looking information for individual sustainability-related
disclosures.
The Supervisory Board is responsible for monitoring the process for the
preparation of the Group Sustainability Report.
Inherent Limitations in the Preparation of the Group Sustainability
Report
The CSRD and the applicable German statutory and other European
requirements contain wording and terms that are still subject to
considerable interpretation uncertainties and for which no authoritative,
comprehensive interpretations have yet been published. Therefore, the
executive directors have disclosed their interpretations of such wording
and terms in section “E.ON’s Approach to Sustainability” and the following
sections of the Group Sustainability Report. The executive directors are
responsible for the reasonableness of these interpretations. As such
wording and terms may be interpreted differently by regulators or courts,
the legality of measurements or evaluations of sustainability matters based
on these interpretations is uncertain. As further set forth in the Group
Sustainability Report, the quantification of the non-financial performance
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E.ON Integrated Annual Report 2024
217
indicators mentioned there is also subject to inherent uncertainties due to
significant estimations and measurement uncertainties.
These inherent limitations also affect the assurance engagement of the
Group Sustainability Report.
German Public Auditor’s Responsibility for the Assurance
Engagement on the Group Sustainability Report
Our objective is
a) to express a limited assurance conclusion, based on the assurance
engagement we have conducted, on whether any matters have come to
our attention that cause us to believe that the Group Sustainability
Report, taking into account the disclosures in the Group Sustainability
Report marked with [+] and subject to a reasonable assurance
engagement, has not been prepared, in all material respects, in
accordance with the CSRD and the applicable German legal and other
European requirements and the supplementary criteria presented by the
company's executive directors and to issue an assurance report that
includes our assurance conclusion on the Group Sustainability Report,
taking into account the disclosures in the Group Sustainability Report
marked with [+] and subject to a reasonable assurance engagement.
b) to express a reasonable assurance opinion based on the assurance
engagement we have conducted, as to whether the disclosures marked
with [+] Group Sustainability Report are prepared, in all material
respects, in accordance with the requirements applicable to these
disclosures and the supplementary criteria presented by the executive
directors of the Company.
As part of an assurance engagement in accordance with ISAE 3000
(Revised), we exercise professional judgment and maintain professional
skepticism.
In addition we:
a) for the limited assurance engagement
− obtain an understanding of the process used to prepare the Group
Sustainability Report, including the materiality assessment process
carried out by the entity to identify the disclosures to be reported in
the Group Sustainability Report,
− identify disclosures where a material misstatement due to fraud or
error is likely to arise, design and perform procedures to address these
disclosures and obtain limited assurance to support the assurance
conclusion. The risk of not detecting a material misstatement
resulting from fraud is higher than the risk of not detecting a material
misstatement resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misleading representations or the
override of internal control. In addition, the risk of not detecting a
material misstatement in information obtained from sources in the
value chain not within control of the entity (value chain information) is
ordinarily higher than the risk of not detecting a material
misstatement in information obtained from sources within the control
of the entity, as both entity management and we as practitioners are
ordinarily subject to restrictions on direct access to the sources of the
value chain information,
− consider the forward-looking information, including the
appropriateness of the underlying assumptions. There is a substantial
unavoidable risk that future events will differ materially from the
forward-looking information.
b) for the reasonable assurance engagement
− perform risk assessment procedures, including obtaining an
understanding of the internal controls that are relevant to the
assurance engagement on the disclosures marked [+] the Group
Sustainability Report in order to identify and assess the risks of
material misstatement at the assertion level due to fraud or error, but
not for the purpose of expressing an assurance opinion on the
effectiveness of these internal controls of the company. The risk of
not detecting a material misstatement resulting from fraud is higher
than the risk of not detecting a material misstatement resulting from
error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or override of internal controls. In addition, the
risk of not detecting a material misstatement in information obtained
from sources in the value chain not within control of the entity (value
chain information) is ordinarily higher than the risk of not detecting a
material misstatement in information obtained from sources within
the control of the entity, as both entity management and we as
practitioners are ordinarily subject to restrictions on direct access to
the sources of the value chain information,
− evaluate the appropriate derivation of the forward-looking disclosures
from the significant assumptions and the appropriateness of these
assumptions. We do not express any assurance either on the forward-
looking disclosures nor on the assumptions on which they are based.
There is a significant unavoidable substantial risk that future events
will vary substantially in relation to the forward-looking disclosures.
Summary of the Procedures Performed for the Limited Assurance
Engagement by the German Public Auditor
A limited assurance engagement involves the performance of procedures
to obtain evidence about the sustainability information. The nature, timing
and extent of the selected procedures are subject to our professional
judgment.
In performing our limited assurance engagement, we:
• evaluated the suitability of the criteria as a whole presented by the
executive directors in the Group Sustainability Report,
• inquired of the executive directors and relevant employees involved in
the preparation of the Group Sustainability Report about the preparation
process, including the materiality assessment process carried out by the
entity to identify the disclosures to be reported in the Group
Sustainability Report, and about the internal controls relating to this
process,
• evaluated the reporting policies used by the executive directors to
prepare the Group Sustainability Report,
• evaluated the reasonableness of the estimates and related information
provided by the executive directors. If, in accordance with the ESRS, the
executive directors estimate the value chain information to be reported
for a case in which the executive directors are unable to obtain the
information from the value chain despite making reasonable efforts, our
assurance engagement is limited to evaluating whether the executive
directors have undertaken these estimates in accordance with the ESRS
and assessing the reasonableness of these estimates, but does not
include identifying information in the value chain that the executive
directors have been unable to obtain,
• performed analytical procedures and made inquiries in relation to
selected information in the Group Sustainability Report,
• performed site visits,
• considered the presentation of the information in the Group
Sustainability Report,
• considered the process for identifying taxonomy-eligible and taxonomy-
aligned economic activities and the corresponding disclosures in the
Group Sustainability Report.
Restriction of Use / Clause on General Engagement Term
This assurance report is solely addressed to E.ON SE, Essen.
Our assignment for E.ON SE and professional liability is governed by the
General Engagement Terms for Wirtschaftsprüferinnen, Wirtschaftsprüfer
(German Public Auditors) and Wirtschaftsprüfungsgesellschaften (German
Public Audit Firms) (Allgemeine Auftragsbedingungen für
Wirtschaftsprüferinnen, Wirtschaftsprüfer und
Wirtschaftsprüfungsgesellschaften) in the version dated January 1, 2024
(www. kpmg.de/AAB_2024). By reading and using the information
contained in this assurance report, each recipient confirms having taken
note of provisions of the General Engagement Terms (including the
limitation of our liability for negligence to EUR 4 million as stipulated in
No. 9 of the General Engagement Terms) and accepts the validity of the
attached General Engagement Terms with respect to us.
Other Information → Assurance Report in Relation to the Group Sustainability Report
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E.ON Integrated Annual Report 2024
218
Duesseldorf, February 24, 2025
KPMG AG
Wirtschaftsprüfungsgesellschaft
[Original German version signed by:]
Bock
Krause
Wirtschaftsprüfer
[German Public Auditor]
Other Information → Boards
Contents
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E.ON Integrated Annual Report 2024
219
Boards
Supervisory Board (and Information on Other Directorships)
Erich Clementi
Chairman of the Supervisory Board, E.ON SE
→ Deutsche Lufthansa AG1
Ulrich Grillo
Deputy Chairman of the Supervisory Board, E.ON SE
Chief Executive Officer, Grillo-Werke AG
→ Rheinmetall AG1 (Chair)
Frank Werneke (since January 1, 2024)
Deputy Chairman of the Supervisory Board, E.ON SE (since January 16,
2024);
Chairman of the United Services Trade Union (ver.di)
→ ZDF Studios GmbH
Katja Bauer
Deputy Chairman of the Supervisory Board, E.ON Energie Deutschland
GmbH;
Chairman of the Works Council, Wunstorf/Osnabrück/Kassel of E.ON
Energie Deutschland GmbH;
Member of the Group Works Council, E.ON SE
→ E.ON Energie Deutschland GmbH2
Klaus Fröhlich
Chartered engineer, former member of the Management Board, Bayerische
Motoren Werke AG
Anke Groth
Member of the Supervisory Board
→ DKV Mobility Group SE
→ Mondi plc (since April 1, 2023)
Eugen-Gheorghe Luha
Chairman of the Gaz România gas trade union federation;
Chairman of the Employees‘ Representatives of Romania;
Member of the SE-Works Council, E.ON SE
Stefan May
Deputy Chairman of the Group Works Council, E.ON SE; Member of the
SE-Works Council, E.ON SE
Chairman of the General Works Council, Westenergie AG Gruppe;
Chairman of the Works Council of the Münster Region, Westnetz GmbH
→ Westenergie AG2
Szilvia Pinczésné Márton
Chairwoman of the Works Council, E.ON Dél-dunántúli Áramhálózati Zrt.;
Member of the SE-Works Council, E.ON SE
Nadège Petit
Chief Innovation Officer, Executive Vice President, of Schneider
Electric Industries SAS
René Pöhls
Chairman of the SE-Works Council, E.ON SE;
Deputy Chairman of the Group Works Council, E.ON SE; Chairman of the
Group Works Council, envia Mitteldeutsche Energie AG;
Chairman of the joint General Works Council and the joint
Halle/Kabelsketal Works Council, envia Mitteldeutsche Energie AG,
MITGAS Mitteldeutsche Gasbedarf GmbH, Mitteldeutsche
Netzgesellschaft Strom mbH and Mitteldeutsche Netzgesellschaft Gas
mbH
→ envia Mitteldeutsche Energie AG2
Andreas Schmitz
Management consultant
→ Scheidt & Bachmann GmbH (Chairman)
→ Webasto SE (since July 2024)
Dr. Rolf Martin Schmitz
Former Chief Executive Officer RWE AG
→ TÜV Rheinland AG
→ Encavis AG1 (Chairman)
→ Kärntner Energieholding Beteiligungs GmbH
→ KELAG-Kärntner Elektrizitäts-AG
Elisabeth Wallbaum
Expert, SE Works Council E.ON SE and E.ON Group Works Council
Deborah Wilkens
Management consultant
Axel Winterwerber
Chairman of the Works Council Frankfurt region and
chairman of the Group General Works Council, Süwag Gruppe;
Deputy Chairman of the SE-Works Council, E.ON SE,
Chairman of the Works Council, E.ON SE;
→ E.ON Pensionsfonds AG2
→ Süwag AG2
→ Syna GmbH2
Unless otherwise indicated, information is as of December 31, 2024, or as of the date on which membership in the E.ON SE Supervisory Board ended.
→ Directorships/memberships in other statutory supervisory boards.
→ Directorships/memberships in comparable domestic and foreign supervisory bodies of commercial enterprises.
1Listed company.
2E.ON Group directorships/memberships.
Other Information → Boards
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E.ON Integrated Annual Report 2024
220
Supervisory Board Committees
Executive Committee
Erich Clementi, Chairman
Frank Werneke (since January 16, 2024), Deputy Chairman
Ulrich Grillo
René Pöhls
Dr. Rolf Martin Schmitz
Axel Winterwerber
Audit and Risk Committee
Andreas Schmitz, Chairman
René Pöhls, Deputy Chairman
Katja Bauer
Anke Groth
Elisabeth Wallbaum
Deborah Wilkens
Innovation and Sustainability Committee
Klaus Fröhlich, Chairman
Stefan May, Deputy Chairman
Nadège Petit
Axel Winterwerber
Nomination Committee
Erich Clementi, Chairman
Ulrich Grillo, Deputy Chairman
Andreas Schmitz
Unless otherwise indicated, information is as of December 31, 2024, or as of the date on which membership in the E.ON SE Supervisory Board ended.
→ Directorships/memberships in other statutory supervisory boards.
→ Directorships/memberships in comparable domestic and foreign supervisory bodies of commercial enterprises.
1Listed company.
2E.ON Group directorships/memberships.
Other Information → Boards
Contents
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E.ON Integrated Annual Report 2024
221
Management Board (and Information on Other Directorships)
Dr.-Ing. Leonhard Birnbaum
Born in 1967 in Ludwigshafen, Germany
Chief Executive Officer of the Management Board since 2021
Member of the Management Board since 2013
Communication & Policy, Auditing, Strategy, Human Ressources,
Occupational Safety & Environmental Protection, Law & Compliance and
PreussenElektra GmbH
→ Georgsmarienhütte Holding GmbH (Chairman)
→ Nord Stream AG
Nadia Jakobi (since June 1st, 2024)
Born in 1977 in Brilon, Germany
Member of the Management Board since 2024
Since June 1st, 2024: Finance, Investor Relations, Mergers & Acquisitions,
Accounting, Controlling, Risk Management, Tax, Finance and S4
Transformation
→ E.ON Energie Deutschland GmbH2 (until Mai 31, 2024)
→ Essent N.V.2 (until Mai 31, 2024)
→ E.ON Sverige AB2 (until June 25, 2024)
Dr. Thomas König
Born in 1965 in Finnentrop, Germany
Member of the Management Board since 2018
Energy Networks (including Turkey), Procurement
→ Avacon AG2 (Chairman)
→ RheinEnergie AG
→ Stadtwerke Essen AG
→ Westenergie AG2
→ E.ON Hungária Zrt.2 (Chairman)
→ E.ON Česká republika s.r.o.2 (Chairman)
→ EG.D Holding a.s. 2 (Chairman, former EG.D a.s.)
→ Essener Wirtschaftsförderungsgesellschaft mbH
Patrick Lammers (until May 31, 2024)
Born in 1964 in Rotterdam, Netherlands
Member of the Management Board since 2021
Until May 31, 2024: Retail and Customer Solutions, Commercial
Programming, Hydrogen, Energy Management, Marketing
→ E.ON Energie Deutschland GmbH2 (Chairman) (until Mai 31, 2024)
→ E.ON Energie A.S.2 (Chairman) (until Mai 31, 2024)
→ E.ON Italia S.p.A.2 (until Mai 31, 2024)
→ Essent N.V.2 (Chairman) (until Mai 31, 2024)
→ E.ON Romania S.R.L.2 (Chairman) (until Mai 31, 2024)
→ Zuid Nederlandse Theatermaatschappij B.V. (Chairman) (until March
1st, 2024)
Dr. Victoria Ossadnik
Born in 1968 in Frankfurt am Main, Germany
Member of the Management Board since 2021
Digital Technology, Consulting, Cyber Security, Innovation
→ E.ON Digital Technology GmbH2 (Chairman)
→ Linde plc.1
→ Münchener Rückversicherungs-Gesellschaft AG1 (since April 25, 2024)
Dr. Marc Spieker
Born in 1975 in Essen, Germany
Member of the Management Board since 2017
Until May 31, 2024: Finance, Investor Relations, Mergers & Acquisitions,
Accounting, Controlling, Risk Management, Tax, Finance and S4
Transformation
Since Juni 1st, 2024: Retail and Customer Solutions, Commercial
Programming, Hydrogen, Energy Management, Marketing
→ Süwag Energie AG2
→ Westenergie AG2 (until September 30, 2024)
→ Nord Stream AG
→ E.ON Energie Deutschland GmbH2 (Chairman) (since June 1st, 2024)
→ E.ON Energie A.S.2 (Chairman) (since July 1st, 2024)
→ E.ON Italia S.p.A.2 (since June 1st, 2024)
→ Essent N.V.2 (Chairman) (since June 1st, 2024)
Unless otherwise indicated, information is as of December 31, 2024, or as of the date on which membership in the E.ON SE Supervisory Board ended.
→ Directorships/memberships in other statutory supervisory boards.
→ Directorships/memberships in comparable domestic and foreign supervisory bodies of commercial enterprises.
1Listed company.
2E.ON Group directorships/memberships.
Other Information → Summary of Financial Highlights
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E.ON Integrated Annual Report 2024
222
Summary of Financial Highlights1
€ in millions
2020
2021
2022
2023
2024
Sales and earnings
Sales
60,944
77,358
115,660
93,686
80,119
Adjusted EBITDA2
6,905
7,889
8,059
9,370
9,049
Adjusted EBIT2
3,776
4,723
5,197
6,387
5,762
Net income/Net loss
1,270
5,305
2,242
760
5,562
Net income/Net loss attributable to shareholders of E.ON SE
1,017
4,691
1,831
517
4,531
Adjusted net income2
1,638
2,503
2,728
3,068
2,856
Value measures
ROCE (%)
6,2
7,8
8,8
10,7
8.8
Asset and capital structure
Non-current assets
75,484
80,637
81,769
83,034
85,307
Current assets
19,901
39,122
52,240
30,472
26,054
Total assets
95,385
119,759
134,009
113,506
111,361
Equity
9,055
17,889
21,867
19,970
24,166
Capital stock
2,641
2,641
2,641
2,641
2,641
Minority interests without controlling influence
4,130
5,836
5,944
5,856
6,325
Non-current liabilities
61,761
61,359
57,934
55,923
57,218
Provisions
21,384
19,449
14,968
14,013
13,473
Financial liabilities
29,423
28,131
28,965
30,823
34,100
Other liabilities and other
10,954
13,779
14,001 ³
11,087
9,645
Current liabilities
24,569
40,511
54,208
37,613
29,977
Provisions
3,904
11,782
5,528
4,866
4,292
Financial liabilities
3,418
6,530
5,186
4,617
4,964
Other liabilities and other
17,247
22,199
43,494 ³
28,130
20,721
Total assets and liabilities
95,385
119,759
134,009
113,506
111,361
1Adjusted for discontinued operations.
2Adjusted for non-operating effects.
3The presentation of the maturities of liabilities from derivative financial instruments was adjusted by €16.7 billion as of December 31, 2022, from non-current to current within the meaning of IAS 8.41 ff.
This relates to energy procurement and sales contracts that are not classified as own-use contracts under IFRS 9 and are accounted for as commodity derivatives.
Summary of Financial Highlights
Other Information → Summary of Financial Highlights
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E.ON Integrated Annual Report 2024
223
Summary of Financial Highlights1
€ in millions
2020
2021
2022
2023
2024
Cash flow, investments, and financial ratios
Cash provided by operating activities of continuing operations5
5,313
4,069
10,045
5,654
5,712
Cash-effective investments
4,171
4,762
4,753
6,463 ⁴
7,499
Equity ratio (%)
9
15
16
18
22
Economic net debt (at year-end)
40,736
38,773
32,742
37,691
41,067
Cash provided by operating activities of continuing operations as a percentage of
sales
8,7
5,3
8,7
6.0
7.1
Stock and E.ON SE long-term ratings
Earnings per share attributable to shareholders of E.ON SE (€)
0,4
1.80
0.70
0.20
1.77
Dividend per share4 (€)
0,47
0,49
0,51
0,53
0,55
Dividend payout6
1,225
1,278
1,331
1,384
1,437
Moody’s
Baa2
Baa2
Baa2
Baa2
Baa2
Standard & Poor’s
BBB
BBB
BBB
BBB
BBB+
Fitch
BBB+
BBB+
BBB+
Employees
Employees (at year-end)7
74,866
69,733
69,378
72,242
76,566
1Adjusted for discontinued operations.
2Adjusted for non-operating effects.
3The presentation of the maturities of liabilities from derivative financial instruments was adjusted by €16.7 billion as of December 31, 2022, from non-current to current within the meaning of IAS 8.41 ff.
This relates to energy procurement and sales contracts that are not classified as own-use contracts under IFRS 9 and are accounted for as commodity derivatives.
4Adjustment of the previous year's figures due to the expansion of investments to include cash inflows and outflows for loans to affiliated non-consolidated companies as well as other loans.
5Fully includes the Renewables segment from January 1, 2018, to September 18, 2019, and innogy’s business in the Czech Republic from September 18, 2019, to October 30, 2020.
6For the respective financial year; the 2024 figure is management’s proposed dividend.
7Core workforce does not include apprentices, working students, or interns. This figure reports full-time equivalents (“FTE”).
Other Information → TCFD
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E.ON Integrated Annual Report 2024
224
Task Force on Climate-related
Financial Disclosures (“TCFD”)
E.ON aims for its business to become continually more sustainable. This
includes making steady progress toward our climate targets, effectively
managing climate-related risks, seizing climate-related opportunities that
fit with our corporate strategy, and reporting transparently on all these
matters. To ensure that we do so, we have put in place a highly effective
governance structure.
The TCFD’s recommendations provide important guidance for reporting.
Established in 2015, the TCFD aims to develop consistent, comparable,
and accurate climate-related financial risk disclosures that companies can
use to provide information to investors, lenders, insurers, and other
stakeholders.
In addition, the TCFD reporting is supported by additional detailed
information in the publication “On course for net zero—Supporting paper
for E.ON’s decarbonization strategy and climate-related disclosures.”
TCFD-Recommendation
Annual Report 2024
Steering
→ E.ON’s Approach to Sustainability
→ Climate Protection
Strategy
→ Strategy
→ E.ON’s Approach to Sustainability
→ Climate Protection
→ Political Dialog
→ Sustainable Finance
Risik management
→ E.ON’s Approach to Sustainability
→ Climate Protection
→ Risks and Chances Report
Climate indicators and targets
→ Climate Protection
→ EU-Taxonomy
→ Sustainable Finance
Other Information → ESG Figures
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E.ON Integrated Annual Report 2024
225
ESG Figures
We assess the effectiveness of our sustainability strategy and initiatives by monitoring key performance indicators
(“KPIs”). Capital markets in particular want standardized ESG KPIs. Consequently, this report discloses KPIs on our
ESG performance over three years.
In addition, since 2010 we have reported our KPIs in accordance with standards of the German Association for
Financial Analysis and Asset Management (German abbreviation: “DVFA”) and the European Federation of
Financial Analysts Societies (“EFFAS”). KPIs that reflect these standards are indicated by the DVFA/EFFAS ID. KPIs
that are particularly important to us are highlighted.
The audit levels of the KPIs that were part of the independent Sustainability Assurance or the audit of the
consolidated financial statements can be found in the Combined Group Management Report as well as the
Annexes to the Combined Group Management Report. The About This Report chapter explains how the respective
KPIs are marked and with which audit level they were audited.
Environment
Climate protection1
DVFA/EFFAS
2024
2023
Greenhouse gas emissions (total CO₂ equivalents in million metric tons,
location-based)
E03-01
70.61
76.17
Greenhouse gas emissions (total CO₂ equivalents in million metric tons,
market-based)
E03-01
68.45
73.41
Scope 12, 3
E02-01
1.98
2.01
Scope 2 (location-based)4
E02-01
3.66
3.46
Scope 2 (market-based)5
E02-01
6.41
6.17
Scope 3 (location-based)3, 6, 7
E02-01
64.97
70.69
Scope 3 (market-based)
E02-01
60.06
65.23
1For reasons of materiality, this figure includes all subsidiaries and generation facilities that are fully consolidated in E.ON's financial
statement. Companies with fewer than ten employees do not have to be included if their activities have no material impact on the various
Scope 1 to Scope 3 categories.
2The external global warming potential ("GWP") sources used are the Department for Energy Security and Net Zero (DESNZ, formerly
DEFRA/BEIS), the Greenhouse Gas Protocol, the Överenskommelse Värmemarknadskommittén, and the IPCC AR6 report.
3Emissions from power and heat generation are divided into emissions from plants owned and operated by E.ON (Scope 1) and emissions
from plants leased to, and operated by, customers (Scope 3).
4The external global warming potential ("GWP") source used is the International Energy Agency ("IEA").
5The external global warming potential ("GWP") sources used are the International Energy Agency ("IEA") and the Association of Issuing
Bodies ("AIB").
6The external global warming potential ("GWP") sources used include the International Energy Agency ("IEA"), the IPCC AR6 report,
Department for Energy Security and Net Zero (DESNZ, formerly DEFRA/BEIS), the Greenhouse Gas Protocol, and the Överenskommelse
Värmemarknadskommittén. Furthermore, primary data from external travel service providers was used for the calculation.
7Scope 3 emissions from purchased electricity and the combustion of natural gas sold to end consumers (energy sold to our private and B2B
customers) in accordance with the GHG Scope 3 Protocol. The emissions from the distribution losses of energy sold to distribution partners
and the wholesale market are recorded accordingly under our Scope 1 and Scope 2 emissions.
The Climate Protection chapter contains more information.
Other Information → ESG Figures
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E.ON Integrated Annual Report 2024
226
Environmental Management
DVFA/EFFAS
2024
2023
Total energy consumption (millions MWh)
E01-01
17
16
Share of employees working at business units certified to ISO-14001
(percentages)
E33-01
81
85
Share of employees working at business
units with ISO 50001 certification (percentages)
61
73
Number of environmental incidents
4 (major)
0
0
3 (serious)
0
0
2 (moderate)
26
16
1 (minor)
376
353
0 (low)
575
506
Incidents on the seven-step International Nuclear Event Scale ("INES")
0
0
Provisions for environmental remediation and similar obligations (€ in
millions)1
E12-05
343
402
Short term
47
79
Long term
296
323
E.ON´s water consumption from Decentralized Energy Generation
Fresh water consumption (million cubic meters)
< 1
< 1
E.ON´s Water Consumption from Water Supply Operations (Infrastructure
Leakage Index)
≤ 1,5
4
≤ 1,5
Fresh water withdrawal - water utilities (million cubic meters)3
E28-01
97.1
83.2
Groundwater
45.8
36.6
Surface Water / Bank filtrate
51.2
46.4
Spring Water Sources
0.2
0.2
Preussen Elektras´s Water Balance4
Fresh water withdrawal
132.4
203.1
Fresh water discharge
131.4
190.5
Fresh water consumption
1.0
12.6
Carbon emission reductions achieved through targeted projects5
6.9
18.4
1Funds set aside for potential redevelopment, water protection, and the remediation of contaminated sites.
2Figures for 2024 are based on a preliminary estimate based on prior-year figures.
3For reasons of materiality, only the withdrawals of the companies Rheinisch-Westfälische Wasserwerksgesellschaft (RWW) and Avacon
Wasser are taken into account here.
4For reasons of materiality, includes PreussenElektra only.
5Among other things, from process and building optimisation projects (62 percent respectively 7 percent)
The Environmental Management contains more information.
1Areas accounting for less than 1 percent of total withdrawal are not displayed.
2Proportion of E.ON’s total water withdrawal.
3PreussenElektra’s Isar 2 NPP operated until April 15, 2023, due to political decisions made in 2022, after which it ceased power production.
4Based on the current overall water risks (baseline) of the Aqueduct 4.0 Water Risk Atlas from the World Resource Institute (WRI), query
in November 2024.
5Based on the pessimistic scenario for 2030 of the Aqueduct 4.0 Water Risk Atlas from the WRI.
The Environmental Management chapter contains more information.
Other Information → ESG Figures
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E.ON Integrated Annual Report 2024
227
Waste
DVFA/EFFAS
2024
2023
Non-hazardous waste (metric kilotons)
652.6
496.1
Recovered
591.6
467.0
Disposed
61.1
29.1
Hazardous waste (metric kilotons)
E06-01
196.1
205.4
Recovered
156.2
170.7
Disposed
39.9
34.7
Total waste (metric kilotons)1
E04-01
848.8
701.5
Total amount of waste recycled (percentages)2
E05-01
88.0
91.0
Low and intermediate-level radioactive
waste (metric tons)
E08-01/
E08-02
1,526.9
1,374.1
High-level radioactive waste (metric tons)
E08-03
0.0
0.0
1Hazardous and non-hazardous waste.
2Percentage of recycled hazardous and non-hazardous waste.
The Environmental Management chapter contains more information.
Power generation
DVFA/ EFFAS
2024
2023
Owned generation by energy source (percentages)
E26-01
Natural gas/oil1
24.0
15.0
Nuclear2
0.0
42.0
Coal1
0.0
1.0
Other (includes biomass, wind and solar)
75.0
42.0
1Attributable share of electricity from combined heat and power plants for E.ON's district heating networks.
2E.ON´s nuclear generation ended in 2023 due to Germany’s phaseout of nuclear power.
The Climate Protection and Sustainable Products and Services chapters contain more information.
Social
Employee Matters
DVFA/EFFAS
2024
2023
Group employees (FTE)1
76,566
72,242
New hires2
Full-time equivalent (FTE)
10,400
10,546
Headcounts
11,189
11,308
Permanent employment contracts (percentages)
68
70
Employees with full-time contracts (percentages)2
89
88
Employees with permanent employment contracts (percentages)2
94
94
Employees with collective bargaining agreements (percentages)2
82
82
Employees with part-time contracts2
9,480
9,092
Average length of service (years)2
12
13
Voluntary turnover rate (percentages)2
S01-01
3.7
4.6
Apprentices in Germany (headcount)
2,582
2,365
Apprentice ratio in Germany (percentages)
5.6
5.6
Female workforce (percentages)2
S10-01
32
32
Female executives (percentages)3
S10-01
26
24
Severely disabled employees in Germany (percentages)2
4.2
4.5
Severely disabled employees in Germany (headcount)2
1,813
1,775
Nationalities (number)2
114
115
Average age (in years)2
41
42
Age distribution (percentages)2
S03-01
< 31 years
22
22
31–50 years
50
49
> 50 years
28
29
1Core workforce; includes board members, and managing directors but excludes apprentices, interns, and working students.
2Total workforce; includes board members, managing directors, apprentices, interns and working students.
3Compared to the total number of executives.
The Working Conditions and Employee Development chapter contains more information.
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E.ON Integrated Annual Report 2024
228
Occupational Health and Safety
DVFA/ EFFAS
2024
2023
SIF1 combined
0.07
0.04
SIF1 Employee
0.03
0.03
SIF1 Contractor
0.12
0.06
LTIF2 combined
2.14
1.90
LTIF2 Emloyee
2.46
2.17
LTIF2 Contractor
1.76
1.62
TRIF3 Combined
2.71
2.40
TRIF3 Employee
3.24
2.77
TRIF3 Contractor
2.08
1.98
NMFR4 Employee
36.57
40.32
Share of employees working at business units certified by ISO 45001
(percentages)
80.0
83.0
Number of days lost with regard to employees5
7,061
Employee and contractor fatal accidents
1
1
Employee health rate (percentages)6
96.1
96.3
1Serious incidents and fatalities measures accidents and incidents per million hours of work that have caused serious or fatal injuries and
that surpass a predefined severity threshold per million hours of work.
2Lost-time injury frequency measures work-related accidents resulting in lost time per million hours of work.
3TRIF measures the number of reported fatalities and occupational injuries and also includes injuries that occur during work-related travel
that result in lost time or no lost time and/or that lead to medical treatment, restricted work, or work at a substitute work station.
4Near-miss frequency rate measures unplanned incidents that had the potential to result in an accident (but did not) per million hours of
work.
5Number of days lost to work-related injuries and fatalities from work-related accidents
(7.051), work-related ill health (10) and fatalities from ill health (0)
6Includes board members, managing directors, and apprentices.
The Occupational Health and Safety chapter contains more information.
Community involvement
DVFA/EFFAS
2024
2023
Corporate giving (€ in millions)
12.7
12.2
Strategic community involvement (€ in millions)
4.2
10.2
Total community investments (€ in millions)
16.9
22.3
Volunteer activities of E.ON employees (number of volunteer hours)
25,514 22,129
The Community Involvement chapter contains more information.
Customers
DVFA/EFFAS
2024
2023
Number of power and gas customers
(millions)
34.6
34.7
Installed smart energy meters (millions)
V11-02
15.9
13.8
Installed smart heat meters (thousands)
128.4
94.4
Customer loyalty development
V06-01
Visit the Customer
Satisfaction chapter.
Reduction of CO₂e emissions at commercial and industrial customers in
Germany (metric tonnes of CO2e)
89,612 375,879
The Customer Satisfaction and Sustainable Products and Services chapters contain more information.
Energy networks
DVFA/EFFAS
2024
2023
Power system length (thousand kilometers)
1,084
1,110
Gas system length (thousand kilometers)
149
149
Power distribution losses (percentage)
3.5
3.5
The Energy Networks chapter contains more information.
CAIDI Power1, 2
2024
Interruptions per minute
Scheduled
Un-
scheduled
Total
Germany
61.2
46.6
49.7
Sweden3
63.3
80.7
74.3
Hungary
271.9
76.5
137.6
Czech Republic3
273.1
97.0
147.1
Romania
313.2
82.2
186.1
Poland
50.3
46.9
47.4
1Totals may deviate due to rounding.
2The key figures are based on the previous year's figures and are standardised with regard to the definition of SAIDI and
SAIFI.
3Including influence of force majeure.
The Security of Supply chapter contains more information.
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E.ON Integrated Annual Report 2024
229
Governance
Compliance
DVFA/EFFAS
2024
2023
Number of notifications received on potential compliance violations1
571
466
Contributions to political parties (percentages)2
0
0
1Cases recorded at Corporate Functions that resulted in investigations and were not subsequently found to be false reports.
2The E.ON Code of Conduct forbids donations to political parties, candidates, and incumbents.
The Compliance and Anticorruption chapter contains more information.
Supplier Management
DVFA/ EFFAS
2024
2023
Supply chain: key performance narrative
V28-04
Visit the Human Rights
and Supply Chain
Management chapter
The Human Rights and Supply Chain Management chapter contains more information.
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E.ON Integrated Annual Report 2024
230
Sustainable Development Goals (“SDGs”) Index
E.ON is committed to the ten principles of the United Nations Global Compact (UNGC) and supports the United
Nations Sustainable Development Goals (SDGs). The SDGs adopted in 2015 are a blueprint for a better and more
sustainable future. We recognize the importance of the SDGs. Our Board of Management underlined this in 2018
by making a voluntary commitment to the SDGs. With its business activities, E.ON can make a significant
contribution to SDGs 7 "Affordable and Clean Energy", 11 "Sustainable Cities and Communities" and 13 "Climate
Protection". The following index presents E.ON's sustainability activities reported in the 2024 Annual Report in the
context of the SDGs.
→ Working Conditions and Employee Development
→ Energy Affordability
→ Compliance and Anticorruption
→ Diversity, Equity & Inclusion
→ E.ON’s Approach to Sustainability
→ EU Taxonomy
→ Community Involvement
→ Occupational Health and Safety
→ Climate Protection
→ Human Rights and Supply Chain Management
→ Sustainable Products and Services
→ Environmental Management
→ Security of Supply
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E.ON Integrated Annual Report 2024
231
May 14, 2025
Quarterly Statement: January – March 2025
May 15, 2025
2025 Annual Shareholders Meeting
August 13, 2025
Half-Year Financial Report: January – June 2025
November 12, 2025
Quarterly Statement: January – September 2025
This Integrated Annual Report was published on February 26, 2025.
Only the German version of this Integrated Annual Report is legally binding.
This Integrated Annual Report contains certain forward-looking statements based on E.ON management’s current assumptions and
forecasts and other currently available information. Various known and unknown risks, uncertainties, and other factors could lead to
material differences between E.ON’s actual future results, financial situation, development, or performance and the estimates given
here. E.ON assumes no liability whatsoever to update these forward-looking statements or to confirm them to future events or
developments.
Financial Calendar and Imprint
Imprint
E.ON SE
Brüsseler Platz 1
45131 Essen
Germany
T +49 201-184-00
info@eon.com
www.eon.com
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