Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• People and Society
• Supply Chain
• Health and Safety
• Business Ethics

Environmental Achievements

• Reduced CO2 emissions by 7% through digital planning of production (preliminary results)
• Reduced energy consumption by 61% and avoided over 38 tonnes of CO2 per year by installing solar panels on R&D facility in Poland

Social Achievements

• Developed and implemented a leadership framework with clearly defined roles, responsibilities and expectations
• Regular performance and development dialogues with managers for all employees
• Mandatory business ethics training for employees

Governance Achievements

• Sustainability topics managed by Head of Sustainability and Sustainability Task Force, reporting to Group Management Team and CEO
• Commitment to several sustainability frameworks (SBTi, UN SDGs, CDP, UN Global Compact)

Climate Goals & Targets

Environmental Challenges

• Limited or no market access to suitable electrified heavy vehicles
• Prolonged time of electrical vehicle delivery
• Lack of access to and additional cost of biofuels
• Limited charging infrastructure access, especially in rural areas
• Security critical network maintenance works requiring combustion-powered vehicles and generators
• Limited renewable electricity supply in Poland, Lithuania, and Germany
• Existing lease agreements hindering renewable electricity target in Finland
• Higher costs of sustainable materials and fuels
• Contractual obligations of large suppliers to major clients
• Increased fuel costs impacting service prices from SME subcontractors
• Not all suppliers willing to set science-based targets

Mitigation Strategies

• Maintaining a modern, fuel-efficient fleet and switching to hybrid or electric vehicles when lease contracts are renewed
• Phasing in new electricity contracts reflecting renewable electricity ambition
• Centralizing electricity contracts
• Engaging with current and future suppliers based on SBTi criteria
• Including SBTi clause in standard contracts
• Knowledge sharing and collaboration with suppliers to pilot low-carbon solutions
• Negotiating higher price levels with clients to compensate for increased fuel costs

Supply Chain Management

Supplier Audits: Regularly conducted, both planned and unannounced

Responsible Procurement

• Eltel Code of Conduct
• Recommendation for ISO certifications
• Agreement and e-learning courses for non-certified suppliers
• Integration of high-risk suppliers into Eltel’s reporting procedures

Climate-Related Risks & Opportunities

Transition Risks

• Limited access to electrified vehicles
• Limited renewable energy supply
• Increased costs of sustainable options

Opportunities

• Development of energy-efficient solutions
• Use of drones to reduce travel and emissions

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi), UN Sustainable Development Goals (SDGs), CDP Climate Change, UN Global Compact

Third-party Assurance: Sustainalytics (Second Party Opinion), Independent party for annual KPI verification

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 9
• SDG 13

Eltel's services enable access to reliable electricity and renewable energy, provide decent work, secure resilient communication and power networks, and contribute to climate action.

Sustainable Products & Innovation

• Digital tools for production planning
• Drone mapping

Environmental Metrics

ESG Focus Areas

• Health and safety
• Climate and environment
• Our people
• Responsible procurement
• Business ethics

Environmental Achievements

• Increased the proportion of electric vehicles in our fleet from 3.2% to 9.3%
• Increased the proportion of renewable electricity sourced from 37% to 56%

Social Achievements

• Improved Employee Engagement Score for the fourth year in a row, to 3.9 (from 3.8), with survey participation increasing to 85% (from 75%)
• Developed new company values with employee input
• Gender equality was promoted through gender pay gap assessments in selected countries. The assessments showed no or negligible pay disparity between genders at Eltel.

Governance Achievements

• Implemented a sustainability-linked finance framework
• Adopted a new Sustainability Policy, Human and Labor Rights Policy, and Environmental Policy
• Introduced a new ESG platform to harmonize Group-wide supply chain management and data collection

Climate Goals & Targets

Environmental Challenges

• Working with suppliers and subcontractors to ensure they understand and comply with health and safety practices
• Vehicle emissions constraints related to switching to electric vehicles and the cost of biofuels
• Insufficient ability to ensure supply chain sustainability
• Meeting CSRD requirements
• Engaging with employees working on various projects across different sites

Mitigation Strategies

• Training and controls to ensure compliance with correct procedures among suppliers and subcontractors
• Country-specific roadmaps for the deployment of electric vehicles and the use of biofuels, alongside overall fleet optimization strategies
• Focus on Eltel’s supply chain partners with the highest emissions and ESG risks. Launched a dedicated Supplier Code of Conduct
• Introducing the necessary governance, IT and reporting structures
• Regular team meetings, townhall meetings via Teams, videos to employees from the CEO, and intranet communication

Supply Chain Management

Supplier Audits: 797 supplier assessments and reviews

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Higher material costs
• Additional expenses
• Potential supply chain disruption

Opportunities

• Growth in renewable energy, e-Mobility and battery energy storage

Reporting Standards

Frameworks Used: SBTi

Certifications: ISO 9001, ISO 45001, ISO 14001

Third-party Assurance: KPMG AB

UN Sustainable Development Goals

• SDG 5
• SDG 8
• SDG 12
• SDG 13
• SDG 7

Eltel supports all the SDGs, but as a sustainability leader in the infranet industry, we believe we can make the greatest contribution to seven of the goals under the broad themes of “responsible employer”, “sustainable communities” and “climate and the environment”.

Sustainable Products & Innovation

• Electric vehicle charging infrastructure
• Solar PV projects
• Battery energy storage solutions

Awards & Recognition

• EcoVadis bronze rating