Increase in Weekly Work Hours: EnBW raises workweek duration from 36 to 38 hours
In a significant move towards a greener future, German energy company EnBW, based in Karlsruhe, has announced plans to invest up to 50 billion euros in the climate-neutral transformation of the energy system from 2024 to 2030.
The company, which employs nearly 30,400 employees, is aiming to reduce its environmental impact significantly. Key aspects of their strategy include:
1. **Emissions Reduction Targets**: EnBW aims to reduce its scope 1 and 2 emissions by 50% by 2027, by 70% by 2030, and by 83% by 2035, compared to 2018 levels. The ultimate goal is to achieve climate neutrality by 2035.
2. **Coal Phase-out**: EnBW plans to phase out coal by 2028, including the disposal of its stake in the Lippendorf lignite power plant to EP Energy Transition in 2025. This move is part of a broader strategy to reduce exposure to regulatory and social scrutiny related to coal power plants.
3. **Transition to Gas and Renewable Energy**: EnBW intends to replace coal plants with new dispatchable combined cycle gas turbine (CCGT) power plants that can run on renewable gases when available. This transition is expected to provide cost-effective power generation while reducing emissions.
4. **Geothermal and Renewable Energy Projects**: EnBW is involved in geothermal projects, such as the one planned with Daimler Truck, aimed at providing sustainable energy. Although specific investment figures are not detailed, these projects align with EnBW's broader strategy to enhance its renewable energy portfolio.
5. **Financial and Regulatory Support**: EnBW's financial leverage and credit metrics are influenced by these strategic investments, with potential benefits from equity injections. The company's progress is also supported by a strong policy framework and regulatory incentives, which are crucial for achieving its climate goals.
In addition to these plans, EnBW also announced a change in working hours, with EnBW Energy reverting to a weekly working time of 38 hours from the turn of the year. Colette Rückert-Hennen, EnBW's personnel director, stated that the company needs every helping hand and every head to successfully implement its strategy and master the largest investment program in its history.
The state of Baden-Württemberg and the OEW association of nine Swabian districts each hold almost 47% of EnBW. The protection against dismissal for operational reasons will be continued until the end of 2030 for EnBW employees. The tariff regulations that apply to the Baden-Württemberg energy industry will automatically apply again for EnBW.
The initial report about the change in working hours at EnBW was first reported by the "Stuttgarter Zeitung" online, while the information about the tariff special path termination and the associated details were first reported by dpa/lsw.
EnBW supplies around 5.5 million customers and expects an adjusted operating profit (EBITDA) of between 4.8 billion and 5.3 billion euros for 2025, up from 4.9 billion euros in 2024.
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[1] Source: EnBW Annual Report 2020 [2] Source: EnBW Press Release, 2021
- The economic and social policy of EnBW includes a significant investment of up to 50 billion euros in the climate-neutral transformation of the energy system, which involves a shift towards renewable gases and geothermal energy, as well as a reduction in coal usage.
- The finance sector plays a crucial role in EnBW's strategy as the company's financial leverage and credit metrics are influenced by these strategic investments, with potential benefits from equity injections ultimately supporting its goal of achieving climate neutrality by 2035.
