One of the practices applied by the Group regarding sustainable development issues, for over 15 years and among the pioneers in Greece, is the implementation and disclosure of evaluation indicators and standards to continuously monitor sustainability. The indicators that the Group discloses concern the international 2021 GRI Standards, the 10 Principles of the UN Global Compact and the CoP (Advanced Level) criteria, the AA1000 Accountability Principles (ΑΑ1000AP 2018) in regard to Inclusivity, Materiality, Responsiveness and Impact, the Athens Stock Exchange ESG indicator disclosure guide (Advanced metrics & Sector-specific metrics), the annual international assessment of the CDP (formerly Carbon Disclosure Project) on climate change as well as the annual assessment by the EcoVadis platform concerning the Group subsidiary EKO S.A. (Silver Recognition Level). These tools significantly assist in the effort to implement sustainable development practices and to assess them for this purpose. In addition, the use of indicators contributes, both in recording the existing situation, and predicting future performance.
HELLENiQ ENERGY’s is rated on its sustainability and social impact, through its environmental, social, and governance practices, by various ESG rating agencies that evaluate the company’s performance. ESG scores from rating agencies help identify investment risk by rating companies with strong ESG performance relative to their peers.
Namely, the Group responds to CDP (as mentioned above), FTSE Russell, MSCI, S&P Global Corporate Sustainability Assessment (CSA), Sustainalytics ESG Risk Ratings and Corporate Knight Global 100. ESG ratings and methodologies are valuable because they provide investors and other stakeholders insights into the Group’s performance in areas that may not be captured by traditional financial metrics, on indicators such as environmental stewardship and labour practices so that informed decisions may be made regarding investing. Most importantly, not only do these ratings provide a comparison to industry averages, they assist in identifying key areas that performance needs improvement and if the company is aligned with social expectations, which is something that enhances reputation, risk management and overall long term financial performance.
The above responsible operation indicators are disclosed publicly through the Sustainability Report (2022 Sustainability Report | HELLENiQ ENERGY), which is certified by an independent third party to ensure accuracy, completeness and reliability. Based on the 2021 GRI Standards and the Content Determination Principles (consultation with stakeholders), the Sustainability Framework, Materiality and Comprehensiveness, since 2013 the Group has implemented a materiality analysis, with a frequency of every two years, which highlights the Group’s material issues, so that the issues can be transformed into opportunities for the Group’s continuous and sustainable development.
In the context of the Group’s transformation (Vision 2025) and the integration of a new group identity and ESG strategy, the Group in 2022 carried out a new materiality study, identifying and evaluating the most important ESG issues for its responsible operation, with the participation of the Top Management, but also of key representatives of all stakeholders through a series of focus-groups, interviews and online surveys. More specifically, three (3) focus groups were organized in Athens and Thessaloniki, six (6) meetings with Mayors of neighboring municipalities and an online survey in which a total of 892 people from main stakeholder group representatives participated.
The issues were evaluated based on the degree of their impact on the Group’s overall corporate performance and sustainable development, as well as their external impact on the economy, society and the environment ("Double Materiality"). This study was conducted for the 5th time and its results were presented in the 2022 Sustainability Report.
As already mentioned, the Group's strategic priority is to address the phenomenon of Climate Change, which affects its business activity, creating significant risks and opportunities. To properly manage and address climate change related issues, the Group has developed a strategy for its energy transformation towards a low-carbon economy, responding to the continued increase in energy demand and ensuring energy sufficiency by taking measures and projects to reduce emissions. The Group's future investments are determined to a very large extent by its climate change strategy.
At the same time, the Group aims to ensure a working environment, in all activities, with zero accidents and absence of occupational diseases, prevention and protection of the health of employees and external partners, while at the same time promoting the employee himself. It applies the best practices to ensure the quality of its products and creates value in society and the country's economy, emphasizing the implementation of Corporate Responsibility actions.
In addition, it demonstrates zero tolerance to corruption incidents, as it is aligned with principles and values that apply to all aspects of its activities and define a lawful and ethical way of operating to achieve its business goals. At the same time, digital technology and its capabilities are tools for every area of the Group's activity.
Based on ESG criteria, i.e. environmental, social, and corporate governance criteria, the Group constantly maximizes its positive footprint in the country. Through the Sustainability Report, it is held accountable on the most material ESG issues but also on all material issues for the industry, seeking more effective communication with its stakeholders.
The next challenge for the Group is the implementation of the European Union’s (EU) Corporate Sustainability Reporting Directive (CSRD), which will radically improve the availability and reliability of sustainability information whilst creating a culture of transparency around impacts on people and the environment.
