Local value creation

GRI 203-1, GRI 203-2, GRI 204-1, GRI 201-1

As outlined in rules and regulations adopted by senior management, 50Hertz expressed its commitment to pay its taxes on time and in accordance with the law. In so doing, 50Hertz is modelling behaviour that supports the sustainable distribution of the value generated by the company across society. This especially benefits structurally weak regions located in 50Hertz’s grid area.

There were no legal disputes regarding tax issues in the year under review.

Contribution to value creation

50Hertz approached the WifOR institute and asked them to carry out an input-output analysis of its contribution to Germany’s gross domestic product (in terms of direct, indirect and induced economic and fiscal effects). Within the framework of above-average labour productivity and a gross value added ratio of almost 50% (average energy supply: 43%), the direct value added contribution to Germany’s GDP was found to amount to €710 million. This corresponds to approximately 18% of the total economic performance of Rostock. The total value added was found to amount to €1.9 billion if indirect effects (caused by the demand for inputs) and induced effects (through the expenditure of directly and indirectly generated income) were included. In addition, almost 16,000 jobs in Germany were found to be supported by these spillover effects. Across its grid area, 50Hertz creates about 6,000 jobs - 35% of the total amount of jobs created by 50Hertz across the whole of Germany.