|02. Sustainable Development — Sustainability Report 2025 | GEK TERNA
01GEK TERNA Group 02Sustainable Development
ESG Strategy Double Materiality Assessment Stakeholder Engagement Climate Risks & Opportunities
03Governance & Business Responsibility 04Environmental Footprint 05Social Impact 06Value Creation 07Appendices
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Sustainability Report 2025

Sustainable
Development

GRI2-14 GRI2-22 GRI2-24 ATHEX ESGC-G4 ATHEX ESGSS-S10

ESG Strategy

Sustainable Development is a fundamental pillar of GEK TERNA Group’s long-term strategy and business operations. This approach enables the Group to maintain its long-term competitiveness while addressing modern challenges such as climate change, biodiversity loss, and social inequalities.

The integration of Sustainable Development principles into the Group’s business philosophy is reflected in its ESG Strategy, which focuses on identifying the most critical issues related to its operations to maximize positive impacts and minimize negative ones. This is a dynamic approach that is continuously evolving and improving for the benefit of all stakeholders, including shareholders, investors, employees, and society at large.

Sustainable Development — GEK TERNA

During the target-setting process, the full range of the Group’s activities has been taken into account, including significant groups of products and services, customer categories, geographical areas and stakeholder relationships. These targets include both reducing the carbon footprint of activities and strengthening the implementation of Sustainable Development principles across the Group.

In the context of its ESG strategy, GEK TERNA Group has identified three (3) main strategic pillars aimed at creating long-term positive impacts at economic, social and environmental level. These pillars focus on improving operational efficiency, reducing the environmental footprint, promoting social responsibility and strengthening corporate governance.

E Environmental protection for present and future generations
S Achieving a positive impact on society
G Building a resilient and capable workforce and a responsible supply chain
Environment Society Governance ESG STRATEGY
Climate action
Environmental management
Waste management
Active community engagement
Economic contribution
Social investment
Creating a supportive and dynamic work environment
Responsible and sustainable supply chain
Creation and distribution of economic value

The Group’s commitment to further integrate sustainability into its operations is expressed through its ESG Policy. The Policy establishes the framework for managing issues of critical importance to the Group, embedding responsible practices that promote sustainable development, social cohesion and corporate transparency.

In particular, the Policy sets out objectives and guidelines for environmental management, social responsibility and economic sustainability, structured across twelve (12) distinct sections. At the same time, it outlines operational practices that support the effective management of the Group’s economic, social and environmental impacts, enabling it to meet stakeholder expectations. The Policy applies to all Group employees, interns, contractors and subcontractors, as well as to all subsidiaries, unless they have established their own ESG policy.

The Head of the Sustainable Development and Corporate Social Responsibility (CSR) Division coordinates, in collaboration with the relevant departments and divisions, the implementation and monitoring of the Policy. Additionally, the Sustainable Development and CSR Division is responsible for preparing the Group’s Annual Sustainability Report and tracking progress toward the achievement of sustainability goals and indicators, working closely with other departments to collect and verify data. Any findings (e.g., inaccuracies, data gaps) are regularly reported to the Head of the Sustainable Development and CSR Division and, if necessary, to the Board of Directors and the ESG Committee, ensuring transparency and alignment with the Group’s strategic sustainability objectives.

ESG Policy — GEK TERNA
GRI3-1 GRI3-2 GRI3-3 ATHEX ESGC-G2 ATHEX ESGC-G3 ESRS 2IRO-1 ESRS 2SBM-3

Double Materiality Assessment

In 2025, the materiality assessment process was updated to further align with the latest industry best practices and international standards. As part of this effort, a Double Materiality Assessment was conducted, covering both Impact Materiality and Financial Materiality dimensions. The assessment was carried out in accordance with the European Sustainability Reporting Standards (ESRS) and the GRI 2021 Universal Standards.

Impact
Materiality

A sustainability topic is considered material from an impact perspective when it relates to significant actual or potential, positive or negative impacts on people or the environment over the short, medium, or long term.

Double
Materiality

Financial Materiality

A sustainability topic is considered material from a financial perspective if it poses risks or opportunities that affect, or are expected to affect, the company’s financial position, financial performance, cash flows, access to financing, or cost of capital over the short, medium, or long term.

Through this analysis, the Group aims to identify the key parameters linked to its business activities to act proactively, enhancing its resilience and ensuring uninterrupted operations. In this context, the analysis has taken into account the Group’s entire value chain, both for the parent company and its subsidiaries, to better reflect current trends and challenges in the broader socio-economic environment.

Double Materiality Assessment — GEK TERNA

The approach was based on a wide range of international and sector-specific sustainable development standards, initiatives, and data sources. In addition to the European Sustainability Reporting Standards (ESRS) under the CSRD Directive, the 2021 GRI Standards, the Athens Stock Exchange ESG Reporting Guide, as well as the SASB and MSCI standards were considered. Furthermore, findings from a benchmarking analysis of material sustainability topics among peer companies at both European and national levels were utilized to strengthen the documentation and prioritization process.

The Double Materiality Assessment was carried out through four (4) distinct stages:

01

Understanding of the business model, value chain & related activities

  • Review of the Group’s activities, operating, and business model
  • Mapping of the value chain and key stakeholder groups
  • Overview of the Group’s external environment (e.g., peer companies)
  • Identification of potentially material sustainability topics using data from previous analyses, ESG disclosures, industry standards, and benchmarking of peer companies
02

Identification of impacts, risks and opportunities

  • Identification of the Group’s positive and negative (actual and potential) impacts on the environment and society, including impacts on human rights, for each topic identified as potentially material in the previous stage.
  • Identification of financial risks and opportunities arising from environmental, social, and governance (ESG) issues for each topic previously identified as potentially material, taking into account the impacts recognized in the prior stage.
  • Comprehensive stakeholder engagement plan to support the identification and assessment of impacts, risks, and opportunities.
03

Assessment of impacts, risks and opportunities

Impact materiality

The impacts identified for potentially material topics were assessed through a dedicated workshop (focus group), involving representatives from the Group’s administrative, management and supervisory bodies, as well as key operational sectors and functions. To enhance transparency and reliability, a representative from the Internal Audit Unit attended the session during the impact materiality scoring process.

Financial materiality

Given that financial implications constitute sensitive information for the Group, the assessment of risks and opportunities was carried out with the participation of relevant senior management executives, through a dedicated working group (focus group). The outcome of the process is the development of a list of scored risks and opportunities for each potentially material topic.

04

Determination of material topics and final results

  • Analysis of results and determination of final scores for the identified impacts, risks, and opportunities.
  • Definition of materiality threshold: To enhance transparency and comparability, distinct quantitative materiality thresholds were established for each materiality dimension. These thresholds were dynamically determined based on the distribution and range of the scores.
  • Identification of material topics

The 2025 Double Materiality Assessment highlighted 11 material topics, which are linked to 7 broader sustainability areas. These topics serve as the foundation for refining the business strategy, implementing relevant actions, and guiding ESG disclosures.

Environment
EESRS E1

Climate change adaptation

EESRS E1

Climate change mitigation

EESRS E1

Energy

EESRS E5

Waste

Society
SESRS S1

Own workforce and working conditions

SESRS S1

Equal treatment and opportunities for all

SESRS S2

Working conditions for the workforce in the value chain

SESRS S3

Communities’ economic, social and cultural rights

Governance
GESRS G1

Corporate culture

GESRS G1

Corruption and bribery

Group-specific topic
Group-specific

Value creation

Of these topics, four (4) were considered material under both dimensions, while the remaining seven (7) were deemed material solely from the impact materiality perspective. In addition, this Report includes disclosures on “Other Significant Topics”, appropriately indicated throughout the relevant sections.

Double Materiality — GEK TERNA

As part of the ESG strategy the Group systematically manages both the positive and negative impacts associated with its material topics, as identified through the Double Materiality Assessment and stakeholder engagement processes. For each material topic, appropriate measures are taken, supported by targeted policies and monitoring mechanisms. This approach enables the Group to enhance positive outcomes, such as innovation, social contribution and environmental efficiency, while mitigating adverse impacts, including greenhouse gas emissions and social exclusion risks. The integration of this process into the Group’s overall strategy supports long-term sustainability and strengthens the trust of investors and society at large.

Material Impacts

Sustainability topic Sub-topic ESRS Impacts Impact categorization Time horizon Value chain
E1 Climate change Climate change adaptation Climate-resilient infrastructure
Strengthening the Country’s resilience through the development of infrastructure that supports adaptation to climate change.		 Positive Actual Mid-term Own operations - Downstream
E1 Climate change Climate change mitigation Greenhouse gas emissions
Direct and indirect CO₂ emissions arising from the Group’s activities and value chain.		 Negative Actual Short-term Across the value chain
E1 Climate change Energy Energy consumption
Energy consumption from fossil fuels during the implementation of the Group’s activities.		 Negative Actual Mid-term Own operations
E5 Resource use and circular economy Waste Waste generation
Generation of waste due to the Group’s activities.		 Negative Actual Mid-term Own operations
S1 Own workforce Working conditions Building a safe and supportive working environment
Enhancing employees’ wellbeing, sense of safety, and engagement within a healthy and supportive workplace through the implementation of relevant initiatives and measures.		 Positive Actual Short-term Own operations
S1 Own workforce Working conditions Occupational health and safety incidents
Workplace accidents/incidents and their consequences.		 Negative Actual Mid-term Own operations
S1 Own workforce Equal treatment and opportunities for all Employee empowerment, fair treatment, and equal opportunities at work
Continuous development and empowerment of the workforce through fair staffing processes and skills-development programs, promoting equal treatment and equal opportunities across the Group.		 Positive Actual Short-term Own operations
S2 Workers in value chain Working conditions Ensuring safe working conditions across the value chain
High standards of health and safety and respect for human rights across the value chain, by requiring suppliers’ compliance with the Procurement Policy, the Human Rights Policy, and the Code of Ethics and Conduct.		 Positive Actual Long-term Upstream
S3 Affected communities Communities’ economic, social and cultural rights Supporting local communities
Contributing to the socio-economic development of local communities by strengthening local employment and supporting the local business ecosystem.		 Positive Actual Short-term Across the value chain
G1 Business conduct Corporate culture Established culture of business ethics
Preventing breaches of business ethics and enhancing transparency through the implementation of a strong corporate governance framework.		 Positive Actual Short-term Own operations
G1 Business conduct Corruption and bribery Zero tolerance for bribery and corruption
Zero tolerance for corruption and bribery and full compliance with the Code of Ethics & Conduct.		 Positive Actual Short-term Across the value chain
Value creation Creation of economic value for the broader spectrum of stakeholders
Advancing economic and social prosperity for employees, shareholders, and society at large through the economic value generated by the Group.		 Positive Actual Mid-term Own operations

Material risks and opportunities

Sustainability topic Sustainability Sub-topic Risk/Opportunity Description Risk/Opportunity Time horizon
E1 Climate Change Climate change adaptation The increased frequency of high temperatures may lead to occasional worksite shutdowns or reduced shift durations, causing delays in project completion. Risk Short-term
E1 Climate Change Energy Fluctuations in energy costs resulting in higher operating expenses. Risk Mid-term
S1 Own workforce Working conditions Shortage of available workforce (whether skilled or not) to support and expand the Group’s activities. Risk Mid-term
Value creation New financing mechanisms to leverage (e.g., EU Funding) that facilitate the implementation of the Group’s strategic investments and expansion into new activities. Opportunity Mid-term
GRI2-29 ATHEX ESGC-S1 ESRS 2SBM-2

Stakeholder Engagement

Continuous and two-way communication with stakeholders constitutes a core pillar of the Group’s operations and strategic development, as it fosters trust-based and collaborative relationships with organisations and individuals that influence or are affected by its activities. Through a carefully structured approach, the Group seeks to understand stakeholder needs and expectations, tailoring its strategy accordingly to consistently incorporate their interests and perspectives.

Stakeholder Engagement — GEK TERNA

This process involves the use of multiple communication channels and the appropriate adjustment of engagement frequency, ensuring an effective and transparent exchange of information. Active stakeholder engagement not only enhances the Group’s corporate reputation but also acts as a catalyst for innovation and sustainable development. This approach enables the Group to leverage valuable insights derived from these interactions to improve its performance and achieve its strategic objectives.

Group Management

  • «One to one» meetings

Employees

  • Regular meetings and updates
  • Bulletin boards
  • Group website
  • Social Media

Customers

  • Projects’ Management
  • Conferences, organizations and business associations
  • Group website
  • Sustainable Development Report
  • Social Media

Financial Institutions

  • General Meeting of Shareholders
  • Shareholders’ Department
  • Presentations to analysts
  • Participation in investment forums
  • Financial Statements
  • Sustainable Development Report
  • Group website

Local Communities and Authorities

  • Personal communication with local authorities, local institutions, associations and unios
  • Open dialogue events
  • Conferences and consultation events
  • Studies and corporate reports
  • Sustainable Development Report
  • Social Media

Suppliers

  • Procurement Department
  • Regular contacts/visits with suppliers and partners
  • Inspections
  • Sustainable Development Report
  • Social Media

Government Entities, State & Institutional Entities

  • Consultation with representatives of the State and institutional bodies at national and/or regional level
  • Conferences and events
  • Corporate publications and articles
  • Financial Statements
  • Sustainable Development Report
  • Social Media

Non-Governmental Organisations (NGOs)

  • Social Media
  • Conferences and consultation events
  • Corporate publications and articles
  • Financial Statements
  • Sustainable Development Report
  • Group website

Media

  • Personal communication
  • Corporate publications and articles
  • Group website
  • Financial Statements
  • Sustainable Development Report
  • Social Media
ESRS 2SBM-3 ATHEX ESGA-E2

Climate Risks & Opportunities

Climate change is leading to increasingly frequent and intense extreme weather events, as well as chronic shifts in weather patterns, creating a dynamic landscape of risks and opportunities for the Group. In light of these challenges, GEK TERNA Group has undertaken a climate-related scenario analysis aimed at assessing the resilience of its business model and strategy. This analysis enables the Group to evaluate its responsiveness and adaptability to the impacts of climate change, ensuring long-term sustainability and operational continuity.

In full alignment with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), the Group has developed a robust mapping of climate-related risks and opportunities at Group level.

Climate Risks and Opportunities — GEK TERNA

The time horizons applied in the analysis are as follows:

2025
Short-term*
1 – 2 years
2027
Mid-term
5 years
2032
Long-term
up to 2050
2050

* For the purposes of the current climate resilience analysis, the short‑term time horizon was defined as a two‑year period, to more accurately reflect the operational and financial planning cycles of GEK TERNA Group, including budgeting and strategic‑planning processes. This approach provides a more realistic and decision‑useful representation of near‑term climate-related risks and opportunities, particularly given that a significant number of relevant impacts, measures and implementation decisions materialise and are assessed within two‑year cycles.

RCP 2.6
< 2°C by 2100

Stringent / Low-Emissions Scenario

RCP 2.6

RCP 2.6 represents the most optimistic scenario, under which global emissions are reduced immediately and significantly, leading to a limitation of temperature increase to below 2°C by 2100. It presupposes the rapid adoption of zero-emissions technologies and strong climate action policies. It reflects an environment of reduced physical risks and more stable transition conditions.

RCP 4.5
~ 2°C by 2100

Intermediate / Stabilization Pathway

RCP 4.5

RCP 4.5 is a scenario of moderate policy action, under which emissions peak around 2040 and subsequently stabilize. Temperature increase is projected at approximately 2°C by the end of the century. It represents a realistic middle pathway, where physical risks increase gradually, while transition risks may intensify due to regulatory and technological changes.

RCP 8.5
> 4°C by 2100

Extreme /
Business-as-Usual Scenario

RCP 8.5

RCP 8.5 represents the most adverse scenario, under which emissions continue to increase without substantial global mitigation efforts. Temperature increase may exceed 4°C by 2100, significantly intensifying physical risks (e.g. extreme weather events, floods, wildfires). It is used to assess the Group’s maximum potential exposure to severe future impacts.

Analysis Results

Considering the wide range of the Group’s activities, several physical and transitional climate risks have been identified, which may affect its uninterrupted operations, as well as key value chain partners. The most significant risks and opportunities recognized are summarized in the table below.

Risks 9

Extreme temperatures, heatwaves, droughts and wildfires

Extreme low temperatures - cold snap

Heavy precipitation, flooding and/or landslides

Changing precipitation patterns / drought

Sea level rise

Legal risks

Reputational risks

Technological risks

Market risks

Physical risks Transition risks
Opportunities 4

Development of sustainable and climate-resilient infrastructure

Expansion into clean energy and e-mobility infrastructure

Improvement of operational efficiency and resource utilization

Enhancement of revenues and access to green financing

Integration into strategy and decision-making

The results of the analysis enhance the Group’s ability to identify potential vulnerabilities at an early stage, capitalise on emerging opportunities and prioritise adaptation and mitigation measures. The analysis supports the integration of climate-related considerations into strategic and operational planning, providing meaningful insights for risk management and long-term resilience.

Climate resilience analysis constitutes a key tool for the Group’s long-term preparedness in addressing the impacts of climate change, supporting informed decision-making and strengthening the resilience of its operations within an evolving climate and energy landscape.