STRENGTHENING OUR SOCIAL FOOTPRINT

Ongoing engagement with local communities helps the Group build long-term relationships of trust with its stakeholders and prove the transparent and responsible attitude it daily takes towards them. Using diverse engagement tools, the Group gains a deeper understanding of the inhabitants’ paramount needs, evaluates them and plans its operations accordingly, taking into account the most important issues of concern.

In 2019, more than 1.1 billion of direct value was distributed to all our stakeholders.
 
Support for local communities 
The Group’s sponsorships and donations are primarily directed to education, training, health, culture and sports programs. Improving quality of life and creating new opportunities are the Group’s main motivation for supporting solidarity actions. In 2019, the companies of the GEK TERNA Group realized a significant program of social support and distribution of economic value, which included sponsorships, donations and infrastructure works and amounted to €2 million.
The Group's social contribution for 2019 included, among others:
• Free construction of infrastructure and other works aiming at improving the daily life of the local citizens,
• Sponsoring of sports clubs and cultural organizations,
• Programs supporting youth entrepreneurship and scholarships, support of scientific research programs, conferences etc.,
• Financial support to Non‐Governmental/Non‐Profit organizations and government agencies that focus :
-on improving the quality of life of vulnerable social groups, such as the ELIZA association against child abuse, the Ark of the World and the Shedia street paper etc.
-on scientific research such as the Hellenic Health Foundation.
• Targeted donations to the Greek Police and the Hellenic Fire Service
• Support of cultural activities across Greece (Prespeia, Student Biennale of the Greek Schools of Fine Arts, concerts, etc.).
Social impact studies 
Before initiating a project, the Group deliberates with local authorities, to inform interested parties and ensure that each project will create mutual socio-economic benefits. In the same context, the Group also conducts social impact studies preceding each new project, which include an assessment of the potential impact on human rights, local health data, and determines the local community and stakeholders with whom the Group will converse on issues that could potentially degrade the quality of life.
Direct and indirect social impact 
The Group’s diverse activities maximize any positive direct or indirect impact it exerts on local communities. Already from their initial stage, infrastructure projects directly create hundreds of new jobs and demand for products and services (including subcontracting) locally. When transport projects begin operating, transport cost of goods is reduced, local entrepreneurship and workplace mobility are both strengthened, cultural convergence of the areas the infrastructure project crosses, get is strengthened, while the environmental footprint is reduced through responsible operation. Social impact is prolonged and extends to additional job openings when concessions are involved (as in toll stations, highway maintenance, etc). The Group's infrastructure and real estate activities stimulate local employment, directly by hiring workers from the local communities and indirectly through assigning work to subcontractors. They also create demand for construction materials and other raw materials, while the introduction of innovative technologies creates valuable expertise among the Group's employees and business partners which is exploited and passed on to the Group’s interior and exterior environment. The Group's activity in Clean and Thermal Energy promotes the production of energy from RES and reduces the needs for electricity generated from conventional sources as well as the induced emissions of greenhouse gases, resulting in the protection of ecosystems in neighboring areas and upgrade of the inhabitants’ living standards. The construction and operation of waste treatment plants contributes to the upgrading of the aboveground (lakes, rivers, seas and air) and underground (aquifer) natural environment and in particular to the improvement of the hygiene conditions in the local communities, while at the same time stimulates local employment and promotes awareness on environmental threats.
Preference for domestic suppliers 
To date, the Group operates in 16 countries and four continents and demonstrates steady growth and potential for expansion into new markets. Despite its vigorous extrovert nature, the Group consistently chooses to cooperate with local suppliers. In this way, it strengthens its direct and indirect socio-economic footprint across the supply chain, by supporting the surrounding areas and stimulating local economies. Opting to cooperate with local suppliers carries a further positive impact since it creates new indirect jobs and contributes to social cohesion and prosperity. In 2019, procurement from Greek suppliers (approximately 4,250 suppliers) across the Group amounted to around €514 million. 65.5% of GEK TERNA Group’s suppliers were Greek in 2019.
Countervailable benefits 
The Group’s activity in RES creates additional social impacts both directly (i.e. levy) and indirectly (e.g., discounts on local residents’ electricity bills). In this context, 3% of the gross annual income from the operation of each RES project is rendered to local communities either directly (in the form of levy) or indirectly (in the form of discounts on electricity bills, infrastructure projects, etc.). During the reporting period, € 4,429,440 million were distributed to municipalities hosting RES projects.