Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environment and Biodiversity
• Social

Environmental Achievements

• Implemented bird protection devices on power lines in Bulgaria (nearly 19,500 devices)
• Implemented environmentally friendly upgrades of electrical and hydro turbine equipment in Bulgaria (Koprinka and Pirinska Bistrica Cascades)
• Reduced energy supply from Gardabani gas turbine power plant in Georgia by 48% due to favorable weather conditions
• Implemented a robust Environmental, Social, Health, and Safety Management System (ESHS-MS) at Alpaslan 2 Dam in Turkey
• Launched an afforestation program in Turkey (48 hectares of Quercus Forest)

Social Achievements

• Established a social fund (“ENERGO-PRO for Society”) in Bulgaria with a budget of BGN 100,000
• Reduced recordable injuries at Georgian companies from 11 (2020) to 3 (2021)
• Implemented a comprehensive training program in Georgia (including IOSH Managing Safely, project management, and language courses)
• Won the “Entrepreneurship for Gender Equality” award in Georgia
• Implemented a Livelihood Restoration Action Plan for households affected by the Alpaslan 2 Project in Turkey (EUR 18 million investment)

Governance Achievements

• Adopted new group policies including a Sustainability Policy and ESG Policy
• Became a signatory of the UN Global Compact
• Established an ESG Committee
• Implemented a Global Code of Conduct
• Implemented several internal policies (Anti-Bribery and Anti-Money Laundering, ESG, Health and Safety, Human Resources, Procurement, Security, Sustainability, Whistle-blower, Data Protection, Human Rights)

Climate Goals & Targets

Environmental Challenges

• Volatility in electricity markets and the Covid-19 pandemic
• Challenges in transitioning grid networks to 100% clean energy due to market regulations
• Lower incomes and inconsistent decarbonisation strategies in operating regions compared to developed countries
• Limited ability to influence Scope 3 emissions (purchased electricity)
• Potential vulnerability to data security breaches and cyber-attacks

Mitigation Strategies

• Adapted daily work to address quarantine measures and other challenges
• Prioritized health and safety of employees
• Developed a sustainability strategy with three interconnected pillars
• Commissioned a Climate Change assignment including GHG inventory, target setting, and decarbonisation roadmap
• Implemented effective cybersecurity procedures and regular software updates
• Developed Procurement Procedures aligned with the Global Code of Conduct

Supply Chain Management

Responsible Procurement

• Procurement Procedures aligned with Global Code of Conduct and policies

Climate-Related Risks & Opportunities

Physical Risks

• Arid years in Turkey due to climate change

Transition Risks

• Market regulations hindering clean energy transition

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 27001 (Czech Republic, Varna EAD)

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 8 (Decent work and economic growth)
• SDG 12 (Responsible consumption and production)
• SDG 13 (Climate action)
• SDG 15 (Life on land)
• SDG 16 (Peace, justice and strong institutions)

Integration of UN Global Compact principles into Sustainability Policy

Awards & Recognition

• “Entrepreneurship for Gender Equality” award (Georgia)
• Best business partner of professional education in Georgia (Millennium Challenge Corporation)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environment and Biodiversity
• Social

Environmental Achievements

• Reduced greenhouse gas emissions by 27.7% since 2019 baseline year (4,248,624 tCO2e in 2022)
• 99% of electricity generated from renewable resources

Social Achievements

• Improved ESG Risk Rating from 27.4 in 2021 to 24.9 in 2022 (Morningstar Sustainalytics)
• Implemented a Group-wide Code of Conduct in 2021
• Launched "ENERGO-PRO Group for society" initiative in Bulgaria with a budget of BGN 100,000

Governance Achievements

• Established an ESG Committee, Climate Change Task Force, and Anti-bribery Committee
• Joined the International Hydropower Association (IHA)

Climate Goals & Targets

Environmental Challenges

• Methodological changes in GHG inventory increased 2019 baseline emissions
• Limited ability to influence overall electricity generation mix in operating markets
• Potential for misalignment or non-conformity with laws due to global scope of business operations
• Potential for negative impacts on business competition by gaining a dominant market position
• Potential for negative impacts from insufficient fund management

Mitigation Strategies

• Created a Climate Change Task Force to drive decarbonization plan
• Improved distribution losses to reduce Scope 2 emissions
• Engaged with stakeholders to increase clean energy in supply chain
• Implemented a Group-wide Code of Conduct and other internal policies
• Implemented anti-corruption, anti-bribery, and anti-money laundering measures

Supply Chain Management

Supplier Audits: 28 suppliers assessed for social and environmental impacts in 2022

Responsible Procurement

• All country operations required to develop Procurement Procedures aligned with Global Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

UN Sustainable Development Goals

• 7
• 8
• 12
• 13
• 15
• 16

ENERGO-PRO Group's business activities contribute to SDGs 7, 8, 12, 13, 15, and 16, and also to SDGs 1, 3, 5, 6, and 10.

Awards & Recognition

• "Entrepreneurship for Gender Equality" award in Georgia

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environment and Biodiversity
• Social Sustainability

Environmental Achievements

• Total emissions decreased by 27.7% from the baseline year (2023 GHG emissions to be detailed in 2024 Sustainability Report).

Social Achievements

• Continued community programs including education, biodiversity awareness, and investment in small projects (e.g., water access).

Governance Achievements

• Improved ESG Risk Rating from Sustainalytics (19.4, moving to low-risk category); updated corporate policies to align with stakeholder expectations and legal changes; implemented a detailed environmental and social action plan as part of DFC financing.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative Standards)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed