By implementing an integrated and modern Environmental and Energy Management System, the Group aims at the early identification and analysis of potential risks, thus achieving the continuous improvement of its environmental performance and the effective implementation of its environmental impact reduction strategy. The Group’s environmental impact reduction strategy follows the following key steps:

– Initial assessment of environmental aspects
– Description of working methods
– Initial assessment of the environmental impact assessment Initial assessment of the environmental impact assessment
– Adaptation to new technologies
– Addressing impacts at source

The modern and comprehensive Environmental Management System of both the Group and its subsidiaries is certified according to the international standard ISO 14001:2015. In addition, the companies of TERNA Group and TERNA ENERGY are certified according to ISO 50001:2018 and apply an Energy Management System horizontally in all their projects and facilities.

The Group makes efforts to rationally manage the consumption of all forms of energy and protect natural resources in all its activities by implementing appropriate measures. Therefore, the Group carries out actions to systematically record and monitor energy consumption in offices, construction sites and facilities so that it is possible to assess its energy needs and take action to reduce the energy consumption of its activities.

At the same time, the Group invests in actions that improve its energy footprint, such as the renewal and maintenance of its machinery in order to increase its useful life and improve its energy efficiency.

Products and services that contribute to carbonisation and reduce energy consumption

Power Purchase Agreements (PPAs) in Greece. In 2021, TERNA ENERGY and HERON were the first companies to introduce long-term Power Purchase Agreements (PPAs) in the Greek market, offering end consumers direct access to green energy by providing MWh through “private” PPAs, paving the way for cheap electricity to industry and large commercial enterprises. The PPAs offered are targeted at large commercial and bio-engineering consumers and respond to their needs to reduce energy supply costs and achieve Sustainable Development Goals. They are fully in line with the objectives of increasing the competitiveness of Greek companies, further penetration of RES in the country’s energy mix and support for the development of RES projects through bilateral commercial contracts with final consumers.

Issue of guarantees of origin. The Group, provides Guarantees of Origin to business customers who wish to do so, as well as to residential customers who opt for the ECO GENEROUS commercial programs. Guarantees of Origin, or Green Certificates, are issued by the RES and Guarantees of Origin Operator (ROGO) in application of the Community Directives 2003/54/EC and 2009/72/EC and national legislation, in order to certify that a certain amount of electricity production comes from RES. Through the Green Certificates, both the Group and the customers that cooperate with it, contribute to the reduction of the carbon footprint of electricity production.

The Group actively participates in the international community’s and the country’s commitment to mitigate climate change and adapt to its inevitable impacts.

With respect for the environment and society, the Group’s business model and operational strategy are fully aligned with its commitment to climate change mitigation and adaptation. In particular, the Group has set specific targets whose results are evaluated on an annual basis.

The issue of climate change is particularly critical to the Group’s activities with its business model being strategically oriented towards mitigating the effects of the climate crisis. Given its impact on all stages of its value chain, proper management of this issue is deemed necessary as it affects its business strategy and its ability to create long-term value.

Specifically, the Group implements a series of projects, actions and investments for the development and operation of renewable energy production and management projects, such as: wind farms, hydroelectric projects, waste treatment plants with green energy production, photovoltaic parks, pumped storage and energy storage projects to ensure the country’s energy supply, floating wind farms and low energy footprint infrastructure projects.

In this way, the Group effectively contributes to reducing its energy footprint and effectively integrates the relevant risks of climate change impacts into its business processes, thereby strengthening its competitive advantage and its ability to create long-term value for its stakeholders.

At the same time, the Group recognizes as a critical issue the increasing frequency of adverse natural phenomena (extreme weather events, fires, floods, increased seismic activity, etc.) resulting from the unavoidable impacts of climate change. To address the relevant risks and ensure the Group’s resilience, an audit has been completed on its business activities in order to identify the climate risks that may have potential economic impacts, assess the likelihood of threat from one or more of the climate risks and evaluate corresponding adaptation measures to reduce the impacts.

Greenhouse gas emissions

The Group manages the impacts of its business activities that lead to an increase in greenhouse gas emissions and aims both to increase the share of renewable energy in the national energy mix and to improve energy efficiency, while promoting investments in energy infrastructure and cleaner energy technologies.

Having as a strategic priority the reduction of its carbon footprint and the implementation of best practices to reduce greenhouse gas emissions resulting from its business activities, the Group records direct and indirect CO2e emissions.

The management of pollution and spill risks is of vital importance to the Group, as it is directly linked to its safe and socially responsible operation and the protection of the environment. The Group’s priority is to prevent all forms of land and marine pollution, to reduce air emissions in accordance with legislation and international standards, and to reduce their impact on health and the environment. In addition, the Group aims to reduce waste through prevention, recycling and reuse.
A key challenge for the Group is to effectively prevent any form of environmental pollution from its business activities, as well as to address potential industrial accidents. Possible pollution of air, water and soil is a permanent potential risk, as it may lead to a shutdown, affecting both the Group’s financial position and reputation. The objective is to avoid any pollution incident by applying preventive and suppressive measures in all areas of its business activity. Key preventive measures and practices to avoid and address water and air pollution risks applied in the Group are:

– Regular training of staff in good environmental practices.
– Regular regular environmental practices.
– Regular monitoring and monitoring of air pollution and air quality.
– Monitoring and monitoring of industrial pollution and the monitoring of industrial pollution.
– Responsible management of hazardous and non-hazardous waste.
– Systematic inspections of installations and construction sites.
– Adequate fire protection.
– The supply of sufficient quantities of spill kits for potential accidental spill management.

The Group sets as a priority the protection of biodiversity, as it is a critical indicator for the balance and proper functioning of ecosystems. Considering that a large part of the Group’s activities (e.g. wind farm development, infrastructure development, highway construction) take place within areas of high biodiversity value, the Group implements a management system that ensures the enhancement of positive and the mitigation of negative impacts that its operations create or may create. In particular, the Group has taken several measures in this direction:

– Implementation of certified systems.

– Conducting training for employees on the construction sites with regard to the protection of biodiversity

– Undertaking initiatives to promote and protect local ecosystems.

– Implement mechanisms to monitor and record its impact on the wider natural environment.

– Activities tailored to the needs of ecosystems

During the construction and operation of its projects, the Group prepares Environmental Impact Studies (EIS), Special Ecological Assessment Studies (SEA), Special Ornithological Studies (SEIS) and Monitoring Programmes in collaboration with specialised scientists and institutions. The aim of these actions is to obtain and use the information necessary to ensure the protection of local ecosystems by taking appropriate protection and restoration measures.

Indicative measures as specified in the respective approved environmental conditions of the projects carried out by the Group are the following:

– Construction of level crossings or tunnels for the unimpeded passage of wildlife.

– Works for the passage of wildlife for the free movement of wildlife.

– Landscaping of slopes.

– Hydraulic studies with determination of measures to protect natural slopes from erosion.

– Soundproofing of the area adjacent to the project.

– Works to ensure unobstructed surface water flow.

– Installation of bird impact protection systems.

A typical example is the E65 motorway, which is located through areas of high biodiversity value, as it passes through two important habitats (the wolf in the south and the brown bear in the north). For this reason, from the initial planning phase, wildlife monitoring programmes were developed in collaboration with the NGO Callisto in both the northern and southern parts of the project. The results of these programmes resulted in the final design which includes special fencing, appropriate lighting, escape exits and approximately 50 upper and lower fauna passes. It is worth noting that the northern part of the motorway is the most critical habitat for four species of wild mammals (Bear, Wolf, Wolf, Roe Deer, Wild Boar), so a special study was carried out to ensure that both the construction and operation of the motorway would have as little impact as possible on the wildlife in the area.

Restoration of areas and construction sites

The protection of biodiversity and the restoration of the natural landscape of exploitable areas associated with the Group’s business activities are an essential challenge for the Group in the context of reducing its ecological impact and contributing to sustainable development.

Plantations

In 2023, the Group continued to take care of the almost 133,000 trees on 950 hectares planted in previous years as part of restoration projects in areas where renewable energy projects have been developed.

Restoration

As part of the construction of the E-65 motorway, the rehabilitation of two old, inactive quarries, totalling 43,600m2 in the municipalities of Lamia and Domokos, with excavation products, has been started since 2023 and is currently underway. The project includes, as far as possible, the morphological restoration of the terrain of the area as well as the vegetative restoration, i.e. the planting of the area.

The incorporation of circular economy principles is a strategic priority for the Group, highlighting its importance not only for the sustainability of the sector in which the Group operates, but also for the protection of the environment. In this context, the Group pursues and applies circular economy principles in many areas of its business activity, focusing on the conservation of natural resources and raw materials as well as on the efficient management of waste.

Conservation of natural resources and raw materials

The raw materials sourced by the Group play a key role in the quality of the projects it delivers and the size of its environmental and energy footprint. For this reason, the Group ensures that it selects materials that meet high safety and functionality standards, even under adverse, severe weather conditions, and with a low environmental footprint, thus contributing to the conservation of natural resources and the strengthening of the circular economy.

In addition, the use of recyclable and sustainable materials is emerging as a central factor in promoting the circular economy. The utilisation of materials that can be recycled or reused (e.g. excavation, construction and demolition materials) to meet the needs of other Group activities, between Group companies and across the different locations of the Group, helps to protect the raw material stock, minimise the waste generated and reduce the impact on the environment.

By adopting the principles of the circular economy, involving methods of recovery and reuse of materials, the Group is enabled to ensure the resilience of its infrastructure and the long-term sustainability of its operations by reducing the use of natural resources.

Waste

The principles of the circular economy are also applied to the Group’s waste reduction initiatives, through responsible collection, treatment and management for all its waste-generating activities, as a key element of its environmental policy.

In this context, the Group aims primarily to reduce the quantity and the degree of risk of waste generated, but also to recover it by separating the waste generated at source, reusing it, recycling it and then disposing of it in accordance with the law, in order to achieve proper waste management in accordance with the principles of the circular economy.

Waste is managed in accordance with the requirements of national and European legislation, as specified in the Environmental Impact Assessment Decisions (EIA), as well as any other requirements due to internal procedures, customer requirements and the specificity of each project or activity. The Group shall ensure that it cooperates with licensed entities for the collection, recovery, treatment, reuse and/or disposal of its waste.

Development of waste management projects

The Group seeks to mitigate issues related to waste management and promote the circular economy by investing in the development of Public-Private Partnership (PPP) projects for the construction and operation of integrated waste treatment plants (Epirus Region, Peloponnese Region).

Through the operation of these units, the Group contributes to the reduction of contamination of the above-ground and underground natural environment (aquifer), positively affecting the improvement of hygienic conditions for local communities and social groups exposed to the risk of waste and the enhancement of environmental and ecological awareness of citizens.

The rational and responsible management of water is highlighted as an essential issue of the Group’s environmental strategy, highlighting the high sense of responsibility towards both the natural environment and the human rights of local communities. The Group is taking initiatives to manage water resources more efficiently, implementing continuous improvement practices and programmes across its operations. In particular, the Group’s efforts focus on:

– Regular training of staff in the proper and responsible management of water.
– The analysis of risks and impacts of unsound water management.
– Investigating water recycling and reuse practices.
– The implementation of an Environmental Management System.
– Water consumption reduction programmes.
– Responsible water disposal.