Gek Terna - Sustainable Development Strategy

SUSTAINABLE DEVELOPMENT STRATEGY

The Group’s strategy for Sustainable Development is based on stakeholder engagement and the identification and evaluation of the most important economic, social and environmental impacts of its activities. At the same time, the strategy aims to enhance positive and reduce negative impacts through best practices, sustainable initiatives and reliable partnerships, and is constantly expanding and improving for the benefit of shareholders, investors, employees and society at large.

In 2022, the Group, following approval by the Board of Directors, adopted the Sustainable Development Policy. The Group's Sustainable Development Policy is inextricably linked to the material topics identified through the Materiality Analysis process so as the Group to be constantly aware of stakeholder needs (internal and external) but also take into account the existing socio-economic trends in relation to its impacts (positive or negative).
In the context of the Group's Sustainable Development Policy, corporate responsibility is in line with the ESG (Environmental-Social-Governance) criteria / principles and focuses on four (4) areas of activity:
1. Environmental protection,
2. Promotion of Human Value,
3. Strengthening the Social Footprint,
4. Development of a Responsible Market

MATERIAL ISSUES

Creation and distribution of direct and indirect economic value

The creation and distribution of economic value is the most material issue for GEK TERNA Group based on both criteria used for the assessment, mainly because of its ability to continue to generate value for all its stakeholders and to ensure its business continuity. The Group creates and distributes income to its stakeholders through the payment of salaries to its employees, payments to its suppliers and affiliates, through direct and indirect payments of taxes to the countries of activity, the distribution of dividends to shareholders as well as from its investment in local communities. These financial flows are subject to multiple risks and uncertainties, such as market risk (exchange rate fluctuations) and regulatory and environmental risks. These risks, financial and non-financial, may, in turn, affect the Group’s cash flow, financial position, and business continuity and/or investor confidence, as well as adversely affect the value it generates and therefore distributes to its stakeholders.

Promoting health, safety and well-being

The Group’s focus on creating value for its People is also expressed by ensuring the health, safety and wellbeing of its employees, which is a material issue for the Group both in ensuring its business continuity and maintaining its reputation as a responsible employer and business partner while contributing to the promotion of decent work and the wellbeing of its employees. The high quality of work is primarily based on the capabilities and performance of the Group’s workforce, which is why it is a priority to provide a safe working environment. Possible risks related to this issue, such as accidents at work, incidents of lost time and other health and safety risks, can occur throughout the Group’s range of activities, both at employee level as well as at suppliers and associates, affecting both the operations (e.g. disruption) and also having financial impacts (e.g. fines, damages, and other penalties). As a result, the Group maintains and operates an integrated and rigorous Health and Safety Management System for all people employed in its facilities and/or affected by its corporate activities.

Ensuring regulatory compliance and business ethics

The issue concerns employees, suppliers & partners but also the government, state & institutional bodies. Continuous promotion of business ethics and compliance are a critical pillar of the Group’s operations as they spread throughout its operations and affect the professional behavior of its people. Recognizing the benefits of applying Business Ethics principles, the Group operates with the most stringent regulatory compliance standards, with the aim of fostering a climate of trust and value with its employees and partners, maintaining and enhancing customer and supplier relationship, protecting and maintaining its corporate reputation as well as ensuring shareholder credibility by ensuring its business continuity and growth and thus its ability to create value. A possible deviation from the applicable laws and regulations and / or failure to do so may adversely affect the Group’s reputation and its social license to operate in the country and region of operation and it may disrupt existing and future relationships with the suppliers and partners.

Contribution to employees training and development

The development and establishment of GEK TERNA Group, as one of the largest business groups in the country is mainly due to the ability of its people to plan and implement its business activities. The Group’s human capital is its core strength in its ability to create value, which is why the Group ensures the continued development and retention of the talents it employs and collaborates with. The Group seeks to carry out continuing education and training programs aimed at upgrading employees’ skills and competencies, improving their productivity, reducing employee mobility and creating executives capable of implementing the Group’s strategy. The issue of continuous development and retention of talent also has an impact on the spreading of expertise to partners and suppliers through the business relationships developed by the Group, as well as on the broadening of the workforce of countries and regions.

Mitigation and adaptation to climate change

Fighting Climate Change is the Group's most genuine commitment to the current environmental regulatory framework. In addition to being a legal obligation, the Group believes it is its moral obligation to actively contribute to the efforts of the International Community and our country to fight Climate Change (e.g., through the Paris Agreement, SDGs, Green Paper, the European Green Deal and the National Adaptation Strategy). Specifically, risk management but also exploiting business opportunities arising from climate change, are essential elements for responsible and effective business continuity and development of the Group and all stakeholders. The Group promotes transition to a business model that depends less on fossil fuels; it also supports alternative energy production and storage technologies, devising plans for adapting to climate change and integrating relevant risks in its business model, leading to the adoption of new technologies and therefore enhance the Group's competitive advantage. In this way, the Group strengthens its ability to create value for its stakeholders and contributes to the broader fight against Climate Change. This material topic impacts all stages of the Group's value chain and relates to its activities, its business strategy and its ability to create value in the future. At the same time, due to the nature and scale of the Group’s activities, Climate Change can affect the entire supply chain. Failing to respond to climate change could adversely influence greenhouse gases directly emitted from construction sites or indirectly from carbon dioxide produced from third parties, such as suppliers involved in the transportation of materials and necessary machinery.

Contribution to employment

Contribution to employment is a material topic for the Group but also for the local communities in which it operates. The creation of new jobs, the provision of internship opportunities to young people in the Group companies, the utilization of human resources by the local community and the retention of employees are impacts of the Group that relate to its entire value chain.

Preservation of natural reserves of raw materials

The circular waste management and the maintenance of the natural reserves of raw materials is important both at Group level, as well as at national and global level. In this context, the Group ensures the separation of waste generated from its activities at source and their maximum utilization. This material topic affects all stages of the Group's value chain. In 2021, we have achieved to maintaine: a high rate of effective non-hazardous waste management, with an emphasis on Reduce-Reuse-Recycle and a high recovery rate of hazardous waste generated.

Biodiversity protection

The protection and preservation of biodiversity and the ecosystems surrounding the Group’s activities are a material issue for the responsible and effective implementation of the Group’s business model and for the implementation of the principles of Sustainable Development with a view to protect the environment. The Group, through the implementation of responsible environmental practices and the adoption of a preventive approach to the impact of its activities on biodiversity, manages to ensure the business continuity of its operations and at the same time minimize its environmental footprint. Potential impacts on biodiversity can be caused by all the activities of the Group as well as its partners and suppliers. For this reason, the Group implements those measures that will ensure the protection and preservation of the biological wealth of the area of activity, will lead to the avoidance of possible regulatory and regulatory sanctions, protect the reputation of the Group and ensure its social license to operate.

Protection and Promotion of Human Rights

The protection and promotion of Human Rights is vital for the Group and the communities within which it operates. Potential discrimination incidents, breaching its employees’ privacy and child labor could result in fine or penalty levying and damaging relations with its employees. This material topic impacts all stages of the Group's value chain. As a responsible corporate citizen, the Group recognizes that the violation of human rights could directly affect society, the environment and the economy in which it operates. By adopting and applying human rights principles in the workplace, the Group contributes to the promotion of the rule of law and the improvement of the legal systems, which are the basis for entering into any business contract.

Emergency situations – Business continuity

Emergency preparedness is a matter of primary importance for GEK TERNA Group. Recognizing that its activities may pose serious risks to employees, as well as those who visit its facilities and construction sites, it ensures the timely planning of measures to address them. The demonstration of emergency preparedness by the Group is achieved through a series of measures and procedures for the prevention and detection of related incidents, the management and the continuous improvement of the safety of procedures, the establishment of procedures for the identification and response to potential accidents as a result of the Group activities, as well as the development of a safety culture, both within (employees) and outside the Group (partner suppliers). Ensuring appropriate levels of preparedness, minimizing the likelihood of accidents at the Group’s premises and throughout its supply chain, it also reduces the potential environmental and financial costs of dealing with such incidents, while enhancing the confidence of stakeholders and their stakeholders.

Healthy and Sustainable Societies

An integral part of the GEK TERNA Group's strategy is the support of citizens through the Group's active contribution to building sustainable and resilient communities. The Group continuously strengthens its relations with the local communities in the areas of its activity with new actions and projects with the aim of maximizing the added value it produces and its positive impacts.