Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environment
• Market and Business Operation
• Employees
• Health and Safety
• Society and Local Community

Environmental Achievements

• Completed construction of the innovative wind park on the islet of Agios Georgios (€150 million investment)
• Stavros Niarchos Foundation Cultural Centre (SNFCC) won LEED Platinum certification
• Invested over €3 million in environmental protection

Social Achievements

• Social product amounted to approximately €1,364,941 thousand, with €350,000 dedicated to programs supporting social growth (84% increase compared to 2015)
• Almost 95% of the group’s suppliers regarding its Greek activities are Greek.
• Employees attended almost 10,000 training hours in 2016

Governance Achievements

• Implemented a contemporary Corporate Governance framework
• Strengthened responsible business practices in all aspects of its business activities

Climate Goals & Targets

Environmental Challenges

• Economic conditions prevailing in Greece
• Trends in the construction and real estate sectors
• Wind and hydrological conditions
• Financial risks (market risk, credit risk, liquidity risk)

Mitigation Strategies

• Diversification of activities to minimize potential risks
• Synergies between different business units to ensure lower costs and more effective risk management
• Internal audit systems and mechanisms to identify, monitor and assess risks
• Risk management plan to identify, assess, manage, and mitigate potential operational risks

Supply Chain Management

Supplier Audits: 48 internal and 3 external environmental audits; 28 audits by the Joint venture Consultant for Joint venture projects; 84 internal and 17 external health and safety audits; 56 additional audits by the Joint venture Consultant for Joint venture projects

Responsible Procurement

• Supporting local suppliers
• Compliance with labour law, health and safety, human rights, and quality systems
• Strict compliance with insurance and labour laws, occupational health and safety regulations, human rights principles, and internal policies

Climate-Related Risks & Opportunities

Physical Risks

• Difficult weather conditions affecting construction
• Increased construction costs due to increased manufacturing difficulty
• Changes in wind data affecting wind power production

Transition Risks

• Not disclosed

Opportunities

• Innovative construction projects
• Increased demand for electricity from renewable energy sources

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007, ELOT EN ISO 17025

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• SNFCC (LEED Platinum)

Awards & Recognition

• SNFCC: LEED Platinum, British Safety Council International Safety Award, ENR 2016 Global Best Projects (Culture category), British Building Awards 2016 (International Project of the Year), Institute of Structural Engineers award

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environment
• Market & Business Operation
• Employees
• Health & Safety
• Society & Local Communities

Environmental Achievements

• Produced 2,088,255 MWh of clean energy in 2017, preventing the emission of 1,553,119 tonnes of carbon dioxide.
• Implemented a certified Environmental Management System in accordance with ISO 14001 for the majority of its subsidiaries.

Social Achievements

• Social Product amounted to approximately €1.5 billion.
• Implemented an ambitious programme for social support and distribution of financial value exceeding €280,000.
• 14 students completed their practical training at the Group, of whom 3 joined its workforce.

Governance Achievements

• Drafted and published its Code of Ethics & Conduct.
• Established a framework of stability, transparency and responsible operation.

Climate Goals & Targets

Environmental Challenges

• Climate change significantly impacting the natural and socio-economic environment.
• Risks related to corruption and bribery in international business activity.

Mitigation Strategies

• Strategic choice to invest in clean energy and transition to a less fossil fuel-dependent economy.
• Modern structures, effective set-up and mechanisms to allow for the development and application of responsible and transparent business institutions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supports local producers and SMEs; in 2017, 91.8% of procurement in Greece was from domestic suppliers; value of procurement from Greek suppliers was approximately €571 million.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services; construction of pumped storage projects; creation of waste treatment plants.

Reporting Standards

Frameworks Used: GRI Standards, Core option

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 39001, ELOT EN ISO 17025, GMP/+B3

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 1, 3, 4, 6, 7, 8, 9, 11, 12, 13, 15, 16, 17

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Hellenic Responsible Business Award for the “HERMEs” programme (Nea Odos)

Environmental Metrics

ESG Focus Areas

• Responsible Corporate Governance
• Protecting the Environment
• Promoting Human Value
• Strengthening our Social Footprint
• Shaping a Responsible Market

Environmental Achievements

• Reduced energy consumption (Electricity: 58,607,525 kWh in 2018 vs 76,514,875 kWh in 2017; Diesel Fuel: 228,463 GJ in 2018 vs 658,177 GJ in 2017)
• Reduced direct GHG emissions (610,967 t CO2 in 2018 vs 490,960 t CO2 in 2017)
• Implemented a modern and integrated Environmental Management System (ISO 14001)
• 33,939 tons of waste reused for the restoration of Temploni and Lefkimi landfills in Corfu.
• Construction of new highways of international standards, minimizing their energy footprint.
• Development of hydro-pumped storage projects

Social Achievements

• Social Product of almost €1.4 billion
• €1.5 million+ in social investment through sponsorships, donations, and infrastructure projects
• 290 new jobs created at the Epirus waste treatment plant
• 5,985 hours of training provided to 807 employees
• Average employee remuneration 25% higher than the national collective agreement in Greece for craftsmen
• Supported youth entrepreneurship and provided scholarships

Governance Achievements

• Implemented Corporate Governance Code
• Regular meetings of the Board of Directors (18 in 2018)
• Active risk management policy
• No confirmed corruption incidents in 2018
• No cases of human rights abuses or discrimination reported

Climate Goals & Targets

Environmental Challenges

• Macroeconomic uncertainty, market risks (exchange rate fluctuations, interest rates, market prices), credit risk, liquidity risk, and climate risk
• Short-term fluctuations in wind and hydrological data
• Volatility of mineral prices in the mining sector
• Fluctuations in cost and sales variables in the real estate sector
• Potential supply chain disruptions due to adverse weather events
• Increased electricity demand for air conditioning and heating

Mitigation Strategies

• Integrated and rigorous Health and Safety Management System (OHSAS 18001:2007 and ISO 45001:2018)
• Climate change adaptation plans
• Investment in renewable energy projects and energy storage technologies
• Development of climate change adaptation plans
• Integration of climate-related risks into the business model
• Responsible energy practices to reduce energy footprint and greenhouse gas emissions
• Emergency preparedness plans and regular readiness exercises

Supply Chain Management

Responsible Procurement

• Code of Ethics and Conduct
• Support for national products and local suppliers (68.8% in 2018)

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather events affecting operations and maintenance costs

Transition Risks

• Need for independence from conventional energy sources; increased operating costs to adopt new technologies; regulatory sanctions

Opportunities

• Development of renewable energy projects and energy storage technologies

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, OHSAS 18001:2007, ISO 45001:2018

Sustainable Products & Innovation

• Biogas production from solid waste

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Natural reserves of raw materials
• Employment
• Employee training and development
• Health and Safety
• Human rights, diversity and equal opportunities
• Regulatory compliance and business ethics

Environmental Achievements

• Renewable energy production units owned by the Group produced 2,202,323 MWh, helping to prevent the release of 1,350,589 tons of greenhouse gases.
• Restoration, reforestation and regeneration works on 280 acres, planting 25,000 plants.
• Over 50% reuse of non-hazardous waste.
• 79% recovery of hazardous waste generated.

Social Achievements

• Group’s social support program for 2021 exceeded 3.5 million euros.
• TERNA built a new, modern school in Damasi village.
• 38 students completed their internship at the Group.
• 16,768.5 training hours provided to 3,371 employees.

Governance Achievements

• Establishment of the Board of Director’s ESG Committee.
• Group’s Regulatory Compliance Management System was certified according to ISO 19600.
• Development of its Human Rights Policy.
• Update of the ISO 19600 certification in the new version of the ISO 37301 standard.

Climate Goals & Targets

Environmental Challenges

• Macroeconomic uncertainty, market risks (fluctuations in exchange rates, interest rates, market prices, etc.), credit risk, liquidity risk.
• Non-financial risks related to Governance, Environment and Society.
• Climate Change physical and transitional risks and opportunities.

Mitigation Strategies

• Risk management policy to limit negative impacts.
• Mitigation policies adopted to address non-financial risks.
• Process of recognizing and qualitatively assessing climate change risks and opportunities in line with TCFD recommendations.
• Implementation of an integrated Business Continuity Plan during the COVID-19 pandemic.

Supply Chain Management

Responsible Procurement

• Cooperation with suppliers complying with environmental, energy and social criteria (e.g., ISO 14001 and ISO 50001 certifications).

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021, Athens Stock Exchange ESG Reporting Guide 2022, SASB Standard “Engineering & Construction Services, 2018”

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 19600, ISO/IEC 27001

Third-party Assurance: Grant Thornton (limited assurance for Sustainability-Linked Bond)

Sustainable Products & Innovation

• EcoMove (electric car sharing), EcoRoof (rooftop solar), EcoHeat (natural gas connection program), Eco-Advisor (energy consulting), HERON EN.A (energy independence program)