Sustainability Report 2025

GEK TERNA
Group

Message from the CEO

In an environment where uncertainty, climate challenges and geopolitical disruptions are redefining priorities, 2025 highlighted resilience as a fundamental prerequisite for sustainable development.

2025 was another year of strong progress for GEK TERNA Group, reaffirming our strategic direction and our ability to create long-term value within a demanding and continuously changing environment. Amid heightened geopolitical, economic and climate challenges, we continued to consistently implement our investment plan, while strengthening our presence in sectors that are critical to the country's growth and resilience.

Our strategy is based on a clear and evolving vision: our transition into a modern investor, operator of critical infrastructure and development partner, with a role that extends beyond the traditional execution of projects. Through targeted investments in sectors such as transport and energy, and through our expansion into new sectors such as water resources management, we are shaping a diversified portfolio that enhances the stability of returns and the Group's long-term resilience. This growth trajectory is also reflected in our financial performance in 2025, with turnover amounting to €3.86 billion and our investment plan reaching €1.35 billion, confirming our strategic choice to play a leading role in the new era of critical infrastructure.

Sustainable development is embedded across the entirety of our activities, as the integration of sustainability criteria into planning and decision-making enhances our ability to manage risks, identify opportunities in a timely manner and consistently respond to the requirements of the climate transition. At the same time, we steadily invest in our people and support local communities, operating with responsibility, transparency and strong corporate governance. In 2025, we invested €5.5 million in social support initiatives, demonstrating in practice our commitment to responding to the needs of local communities.

With foresight and a clear orientation towards the future, we continue to focus on the issues that will shape future developments, seeking not only to respond to challenges, but also to actively shape the context in which they evolve. Our objective remains to be at the forefront of infrastructure and sustainable development, creating long-term value for all stakeholders.

George Peristeris

Chairman and CEO

GEK TERNA Group

2025 Performance

ESG Highlights

GEK TERNA Group consistently aims to create long-term value, strengthening its positive impact on the economy, society and the environment. Our strategy is centered on consistent integration and continuous improvement of performance on Environmental, Social and Governance (ESG) issues, aiming at responsible growth, enhanced resilience and the continuous creation of value for all stakeholders.

The following section outlines the Group's sustainability achievements and key performance indicators for 2025, reflecting the progress recorded across the three ESG pillars.

Pillar

Environment

66.2%

Electricity consumption from RES

73,256MWh

Guarantees of Origin acquired

33,486MWh

energy generated from RES

11.7%

percentage of waste directed to recycling^*

Finalization of the climate resilience analysis

* The percentage refers to waste directed to recovery.

Pillar

Society

€5.5million

in sponsorships and donations

20.4%

women in leadership positions

21.8%

female workforce representation

Zero

fatalities in the workplace

294,540€

total training expenditure

5,798training hours

on health, safety and environment topics

Pillar

Governance

93.6%

share of Group company procurement sourced from domestic suppliers

Zero

confirmed incidents of corruption, bribery, and conflict of interest

Zero

incidents of anti-competitive behavior

Procurement Policy Update

613training hours

on compliance topics

ATHEX ESGA-G3

ESG Priorities & Targets

This section presents the thematic ESG priorities for 2025, the implementation status of each target, as well as the targets set for 2026.

2025 Targets	Status	2026 Targets
Completion and integration of the climate risks and opportunities assessment.	Completed	—
Maintain and/or improve the Group's CDP score (Carbon Disclosure Project).	Completed	Maintain and/or improve the CDP score (Carbon Disclosure Project).
Reduction of annual energy consumption from fossil fuel sources.	In progress	Reduction of annual energy consumption from fossil sources.
Conduct at least one environmental inspection per semester per facility.	Completed	Conduct at least one environmental inspection per facility every six months.
Completion of the environmental training plan for all Group employees.	In progress	Completion of the environmental training plan for all Group employees.
Maintain zero incidents and financial penalties related to non-compliance with environmental permits, standards, and regulations.	Completed	Maintain zero incidents and financial penalties related to non-compliance with environmental permits, standards, and regulations.
—	New Target	Monitoring the percentage of projects/facilities located within or near biodiversity-protected areas.

2025 Targets	Status	2026 Targets
Maintain zero fatal incidents.	Completed	Maintain zero fatal incidents.
Systematic delivery of regular Health & Safety training sessions and execution of targeted initiatives (e.g., Lessons Learned, Newsletters, Campaigns, Certifications).	Completed	Systematic delivery of regular Health & Safety training sessions and execution of targeted initiatives (e.g., Lessons Learned, Newsletters, Campaigns, Certifications).
Conduct at least one inspection per facility every six months to verify compliance with legal and other Health & Safety requirements.	Completed	Conduct at least one inspection per facility every six months to verify compliance with legal and other Health & Safety requirements.
Provide Human Rights training to all employees.	Completed	—
Distribute questionnaires to all new suppliers and subcontractors to ensure their compliance with standards related to the protection of workers' human rights.	Completed	Expansion of the questionnaire distribution base and further assessment of compliance with standards related to the protection of workers' human rights across the value chain.
Maintain the Group's high performance in social contribution activities.	Completed	Maintain the Group's high performance in social contribution activities.
—	New Target	Conducting a socio-economic impact study (SROI) for major projects and concessions with significant local impact.

2025 Targets	Status	2026 Targets
Maintain zero incidents of corruption.	Completed	Maintain zero incidents of corruption.
Perform at least one annual Data Recovery Test to confirm the recovery times of IT systems.	Completed	Perform at least one annual Data Recovery Test to confirm the recovery times of IT systems.
Provide training and awareness sessions to the Group's designated personnel on the implementation of the business continuity plan.	Completed	Maintaining the number of business continuity drills, training sessions and audits.
Deliver cybersecurity training and awareness to all Group employees.	Completed	Deliver targeted cybersecurity training to all Group employees.
Launch of ESG training for all Group's personnel.	In progress	Completion of training for all personnel on ESG matters.
Conduct at least one emergency preparedness drill per facility annually.	Completed	Conduct at least one emergency preparedness drill per facility annually.
Increase internship opportunities for young people.	Completed (22% increase)	Increase internship opportunities for young people.
—	New Target	Assess 10 targeted suppliers/subcontractors on sustainability practices by 2028.
—	New Target	Deliver targeted sustainability training to the members of the Board of Directors.

GRI2-1 SASBIF-EN-000.C ESRS2 SBM-1

The Group at a glance

GEK TERNA Group* is one of the largest business groups in Greece, with a presence in Central and Southeastern Europe and the Middle East. Its diversified portfolio of investment projects enables GEK TERNA Group to maintain a leading position in infrastructure, electricity generation, supply and trading, concessions, waste management, real estate development and management, and mining activities. Listed on the Athens Stock Exchange (FTSE/ATHEX Large Cap), the Group recorded a turnover of €3,855.5 million in 2025.

Its primary objective is continuous, responsible, and sustainable growth, while enhancing competitiveness across all areas of activity. This strategy is implemented through targeted investments, the leveraging of synergies, and innovative initiatives that create added value, strengthen the Group’s resilience, and ensure stable, long-term returns for shareholders.

The Group’s commitment to sustainable development and its ability to deliver complex, large-scale projects is also reflected in its construction backlog, which stands at €9.2 billion. Moreover, contracted projects in the final stages of signing amount to an additional €2.6 billion, further reinforcing the long-term momentum of its construction portfolio.

At the same time, the Group’s dynamic business growth is firmly aligned with the principles of Corporate Responsibility and Sustainable Development. Through its strategy, it supports initiatives that contribute to national and European priorities, aiming to maintain a balanced portfolio built on the solid foundations of its track record, while expanding its business model to further integrate sustainability principles.

* GEK TERNA S.A. is headquartered in Greece. Its registered office and corporate headquarters are located at 85 Mesogeion Avenue, 11526 Athens.

The Group in 2025

3.855 € billion

Turnover

Countries of operation

14,094

Workforce*

73,256 MWh

Guarantees of Origin acquired

9.2 € billion

Construction backlog

~2,000 km

Motorways under management

5.5 € million

in sponsorships & donations

2,576,751 MWh

Energy production from thermal sources and RES

2.6 € billion

Project contracts pending signing

1.3 € billion

Investments

6,149

Employees**

93.6 %

Domestic suppliers

* Including employees and sub-contractors

** Including personnel with direct employment to GEK TERNA Group

Strategy

The Group’s strategy is guided by the following core principles:

Respect for people and the natural environment.

Value creation for all stakeholders.

Integrity and reliability across all business activities.

Social contribution through targeted actions.

ESRS2 SBM-1

Group Activities

Construction/Infrastructure

The Group operates in the construction sector through its subsidiary TERNA S.A. Founded in 1972, TERNA serves as the construction arm and a wholly owned subsidiary of GEK TERNA Group. It is the strongest construction company in Greece, specializing in the delivery of complex and demanding infrastructure projects. At the same time, it operates as a reliable and strategic partner to international groups, with extensive experience both in Greece and abroad, as well as significant synergies with the Group’s other activities in concessions and energy.

TERNA S.A.’s expertise in the execution of major projects in roadworks, buildings, port infrastructure and energy, combined with its strong presence in the markets where it operates, positions it as one of the most recognised companies in the sector.

Electricity from thermal sources, electricity & natural gas trading

GEK TERNA Group operates in the production, supply and trading of electricity and natural gas primarily through its subsidiary HERON Group, in which it holds a 100% ownership interest. Its vertically integrated presence is a key factor in mitigating market-related risks, while enabling the Group to capitalise on opportunities arising across different parts of the value chain.

Real Estate

Maintaining a significant presence in the real estate management and development sector, GEK TERNA Group holds an extensive portfolio valued at €124 million across Greece, Romania and Bulgaria. The portfolio includes owner-occupied properties, commercial centres, industrial parks, land plots and agricultural land in tourist areas.

Concessions

GEK TERNA Group manages a broad concessions portfolio covering major infrastructure assets (transport, tourism and environmental infrastructure), as well as significant projects in the field of the digital economy. Indicatively, the following categories of projects are included in the portfolio:

Motorways
Airports
Tourism and leisure developments
Integrated waste management infrastructure
Ports
Parking stations
Digital transformation projects

It is worth noting that GEK TERNA Group is a leading investor, holding one of the most recently awarded (average contractual duration of 25 years), diversified and low-risk portfolios, with projects such as Nea Attiki Odos, Egnatia Odos, the Northern Road Axis of Crete, the Heraklion International Airport of Crete, among others, while the total length of the motorways under its management amounts to almost 2,000 km.

Mining - Manufacturing

The Group, through its subsidiary TERNA MAG, is engaged in the extraction and processing of magnesite, to produce caustic and dead-burned magnesia products of various qualities and chemical characteristics. The products are mainly sold to customers abroad.

Holdings

This refers to the support function of the Group’s operating business segments, as well as the pilot operation of new business areas.

GRI2-6 ATHEX ESGA-G1 ESRS2 SBM-1

Value Chain and Business Relationships

GEK TERNA Group focuses on building strong relationships with its suppliers, customers, and partners, fostering a network that promotes collaboration and knowledge sharing. In alignment with European standards and regulatory requirements, the Group has undertaken the initiative to map its value chain so that the environmental and social impact of its operations across all business relationships is captured.

The structure of the value chain by business segment is presented below:

Upstream Value Chain

GEK TERNA Group Activities

Downstream Value Chain

Raw material suppliers (cement, steel, timber, etc.)
Equipment suppliers (machinery, vehicles, etc.)
Utility providers
Subcontractors (specialized personnel, technical offices)
Financial institutions and regulatory bodies (banks, licensing authorities)
Insurance services
Water supply service providers

Construction

Waste management services (construction waste)
End users of infrastructure (roads, buildings)
Clients (project sponsors, public sector)

Subcontractors
Suppliers of raw materials
Equipment and technology suppliers (machinery, toll system technologies)
Financial institutions and regulatory bodies
Insurance services
Water supply service providers
Utilities providers

Concessions

Management, operation & maintenance of infrastructure
Unified automatic toll collection system

Airline companies
Waste management services
Road & sea transportation services
End users/customers

Natural gas suppliers
Electricity producers
Financial and regulatory bodies
Insurance services
Material suppliers
Equipment and technology suppliers (turbines, boilers, emission control systems)
Technicians & maintenance contractors
Water supply service providers
Energy & environmental regulatory authorities

Electricity from thermal energy sources, electricity and natural gas trading

Grid operators (TSO, DSO)
Retail customers
Energy Exchange
Carbon market (CO₂)
Waste management services

Building management & operation services
Utilities providers
Insurance services
Materials & equipment suppliers
Construction contractors
Financial institutions

Real Estate

Buyers & tenants
Maintenance services
Waste management services

Equipment manufacturers (mining machinery)
Fuel suppliers
Suppliers of chemicals & materials
Financial institutions
Insurance services
Water supply service providers
Geological & technical consultants

Industry/Mining

Industries using mining products
Transport & logistics companies
Waste management services

The Group’s holdings segment is not reflected in the detailed value chain mapping, as it does not constitute a standalone operational activity, but rather functions in a supporting capacity at the level of strategic oversight and equity participation. Its business relationships and impacts are incorporated and assessed through the respective operational segments included in the value chain.

GRI2-6 ATHEX ESGA-G1 ESRS2 SBM-1

Business Model and Strategy

GEK TERNA Group’s business model forms the foundation of its operations, clearly depicting how the Group creates, delivers, and captures value while addressing the needs of its various stakeholders. This is achieved through the implementation of its strategy, which defines the path toward sustainable growth and market success by leveraging opportunities arising from energy and digital transitions.

Inputs

Financial Capital

Own equity and debt

Human Capital

6,149 employees
Knowledge, skills and abilities
Business Ethics & Integrity

Natural Capital

Water
Land use
Raw materials and resources

Industrial Capital

Business units

Intellectual Capital

Patents
Copyrights
Protocols & Procedures

Social Capital and Collaborations

9,615 National suppliers: 93.6% of the total
639 International suppliers: 6.2% of the total
19 Connected parties: 0.2% of the total

Business activities and values

Our Values

Respect for humans and the natural environment.
Value creation for employees, business partners, customers, and shareholders.
Honesty and reliability.
Targeted social contribution.

Our Activities

Construction
Energy
- Electricity production from thermal energy sources
- Electricity trading
Concessions – Self/Co-financed Projects
Real Estate
Mining / Industry

Outputs: The value we create

Financial Capital

Turnover of 3,855,368 thousand euros

Human Capital

27,610 hours of training (Greece and abroad)
56 students completed an internship at the Group

Industrial Capital

A total of 2,576,751.1 MWh of energy was produced from thermal sources and RES

Intellectual Capital

Update of the Procurement Policy

Social Capital and Partnerships

5.5 million euros in social support programs

Governance

Ensure regulatory compliance and business ethics
Emergency Preparedness – Business Continuity

People

Creation and distribution of direct and indirect economic value
Promotion of health, safety, and well-being
Contribution to employee training and development
Protection and promotion of human rights

Environment

Climate change mitigation and adaptation
Protection of biodiversity
Conservation of natural resources and resources

ATHEX ESGSS-S10

Sustainability-Linked Bond

Sustainable investments are a core element of GEK TERNA Group’s strategy, as they combine the creation of long-term value for all stakeholders with the reduction of the Group’s environmental footprint. Through these initiatives, the Group fosters an environment that promotes sustainability and enhances social well-being.

The Group’s commitment to Sustainable Development is also reflected in the performance of its bond program, which is fully aligned with its strategic goals and objectives. The issuance of a Sustainability-Linked Bond represents another step toward strengthening the sustainable finance market in Greece, while also contributing to the broader adoption of responsible practices and the improvement of ESG performance.

The Bond Framework is aligned with the Sustainability-Linked Bond Principles (SLBP) established by the International Capital Market Association (ICMA).

Selection of Key Performance Indicator (KPI)

The Key Performance Indicator (KPI) considered in the Bond Framework reflects the organization’s commitment to monitoring its performance in relation to greenhouse gas emissions and aligns with the Group’s broader strategic business objectives. The KPI refers to the reduction in greenhouse gas emissions intensity per MWh of energy produced by the Group’s subsidiaries, which are fully consolidated in the Group’s financial statements in accordance with the International Financial Reporting Standards (IFRS).

KPI

Tonnes of GHG emissions Scope 1 + Scope 2 MWh of energy produced

Sustainability Performance Target (SPT)

In line with its commitments and strategy to continuously improve performance and contribute to climate change mitigation, GEK TERNA Group has set a target to reduce its emissions intensity by 25% by 31 December 2025, compared to the baseline period 1 January 2021 – 31 December 2021. This corresponds to a target emissions intensity of 0.1368 tCO₂e/MWhe.

For 2025, following the divestment of TERNA ENERGY, which has not formed part of the Group’s subsidiary portfolio since December 2024 following its acquisition by Masdar, the calculation perimeter of the KPI includes HERON ENERGY S.A., in accordance with the existing definition of the KPI and the methodology of the Sustainability-Linked Bond Framework. The SPT and the KPI respectively remain unchanged.

For 2025, the KPI was calculated at 0.3827 tCO₂eq/MWhe, compared to the target of 0.1368 tCO₂eq/MWhe. As a result, the Sustainability Performance Target was not achieved as at the Target Observation Date and, in accordance with the Sustainability-Linked Bond Framework and the Bond Loan Programme, an Interest Step-Up Trigger Event occurs. Accordingly, the Contractual Interest Rate will equal the Initial Interest Rate plus the applicable Interest Step-Up, from the beginning of the Interest Period following the date on which the Interest Step-Up Trigger Event occurs.

	Company / KPI	2021 base year	2022	2023	2024	2025	Unit
A1	HERON ENERGY S.A.	73,159	4,346	676,419	708,625*	673,203	tCO₂e
A2	HERON II VIOTIAS S.A.	691,876	791,846	676,419	708,625*	673,203	tCO₂e
A3	TERNA ENERGY S.A.	792	372	381	411	—	tCO₂e
A	CO₂e Emissions (Scope 1 & 2)	765,827	796,565	676,801	709,036	673,203	tCO₂e
B1	HERON ENERGY S.A.	106,695	6,590	1,753,900	1,834,000	1,758,879	MWhe
B2	HERON II VIOTIAS S.A.	1,808,590	2,127,300	1,753,900	1,834,000	1,758,879	MWhe
B3	TERNA ENERGY S.A.	2,284,255	2,416,333	2,596,688	2,941,328**	—	MWhe
B	MWh of energy produced by the Group	4,199,540	4,550,223	4,350,588	4,775,328	1,758,879	MWhe
A/B	GHG emissions intensity (KPI)	0.1824	0.1751	0.1556	0.1485	0.3827	tCO₂e / MWhe

← Swipe to see all data →

* On 21 December 2023, the merger by absorption of HERON II VOIOTIA S.A. by HERON ENERGY S.A. was completed, with GEK TERNA Group continuing as the sole 100% shareholder.

** On 28 November 2024, the sale of TERNA ENERGY Group from GEK TERNA Group to MASDAR HELLAS was finalized.