Sustainable Development

Stakeholders play a key role in HELLENiQ ENERGY’s decision-making process. For this reason, as part of conducting the materiality analysis, the Group redefines the stakeholders that participate in, influence, and/or are significantly affected by its business activities, according to its principles/values, strategy, market, and proximity of its activities to them. Specifically, it redefines and redetermines the composition of all stakeholders and the ways of  communicating with them to ensure effective and two-way communication, while taking into account their concerns, needs, and wishes. Finally, to reduce potential risks and identify opportunities related to people and the environment, the Group communicates regularly with its stakeholders. Further information on the methods and frequency of communication is provided in GRI 2-29 disclosure. HELLENiQ ENERGY’s stakeholder groups as identified are presented below.

Materiality analysis is a key tool for identifying, defining, and assessing HELLENiQ ENERGY’s priorities for sustainable development. The Group has been systematically implementing this analysis since 2013. As part of its interaction with its stakeholders, the Group continuously evaluates its impact on people and the environment.

This regular review allows it to identify and manage the impact of its activities promptly, even as circumstances change or new activities arise. Furthermore, HELLENiQ ENERGY has developed a clear risk management process that incorporates risks arising from ESG issues (Environment – Social – Governance).

By implementing the strategic business plan for transformation and sustainable growth, the Group is transforming rapidly while remaining aligned with international sustainability standards.

In December 2023, HELLENiQ ENERGY undertook a Double Materiality analysis taking into account the European Sustainability Reporting Standards (ESRS) for the first time, while continuing to comply with the GRI Standards as the main reference for preparing this report.

Ιmpact Μateriality – “Inside-out” Approach

To identify the positive and negative ( actual and potential) impacts resulting from the Group’s activities and business relationships that affect people and the environment, HELLENiQ ENERGY collaborated with key stakeholder representatives, specialists and experts in sustainable development issues through personal interviews. In addition, the following were taken into account: a) the Group’s business model; b) sustainability standards, such as GRI 11-Oil & Gas Supplement, SASB, TNFD, and UNEP Impact Radar; c) internal and other external sources to understand the causes of impacts. More information regarding the steps followed for the dual materiality analysis is provided in the GRI 3-1 disclosure.

HELLENiQ ENERGY identified twenty-two (22) impacts, which were assessed for their positive and/or negative human or environmental footprint, both in the current financial year 2023 (actual impact) and as potential impacts by 2028.

This assessment considered the nature of activities, business relationships, geographical areas, and other relevant factors (the analysis included critical suppliers, partners, key customers and other Tier 1 players of the value chain).

The impact assessment (positive and negative, actual and potential) was validated by members of the Executive Committee and the Group’s Senior Executives through their involvement in special assessment teams. The results from these teams determined the threshold of materiality. The findings of the Impact Materiality analysis are presented below.

Financial Materiality – “Outside-in” Approach

HELLENiQ ENERGY used the Impact Materiality results to identify and assess the opportunities and risks arising from the impacts that the Group has on people and the environment.

The assessment of risks and opportunities was conducted over two time horizons: a) the actual/current financial year 2023 and b) a medium-term horizon of 2028 (anticipated). Also taken into account were: a) the results of the Group’s risk assessment; b) dependencies  on natural, human, and social resources; c) sustainability standards such as SASB, CDSB and environmental studies; d) sustainability reports of peer companies at European and national level. More information on the steps followed for the double materiality analysis can be found in GRI 3-1 disclosure.

Double Materiality Analysis

To determine double materiality of the Group’s impacts, the approach of Impact Materiality and Financial Materiality were considered, as well as the interdependencies between the two aspects.

The Double Materiality analysis was completed in early 2024 and its results were validated by the Management of HELLENiQ ENERGY, specifically by the CEO and the Sustainability Committee of the Board of Directors, and are accompanied by the Management’s commitment to implement effective policies based on international best practices.

HELLENiQ ENERGY identified seven (7) material impacts, risks and opportunities on an actual/ current basis (financial year 2023). These are presented in the following figure, alongside the other fifteen (15) identified impacts, risks and opportunities.

The successful completion of the first cycle of the “Vision 2025” strategic plan coincides with the decision to take into account the ESRS Standards. In this context, HELLENiQ ENERGY’s material impacts, risks and opportunities along with the overall double materiality analysis highlight their importance for the Group’s operations and long-term strategy on the one hand, and ensures the continued implementation of the sustainability strategy in line with the Group’s comprehensive and long-term plan for society, the economy and the environment on the other hand.

¹ Tranfer pricing transactions are included.
^* Actual/ current basis – 2023
^** Medium-term horizon – 2028 (potential/ anticipated)

HELLENiQ ENERGY invests today for a sustainable future by creating long-term value for all its stakeholders. It adopts ESG criteria in its business strategy and capital allocation, placing sustainability strategy at the core of its actions, with the aim of reducing its carbon footprint across all activities and achieving climate neutrality. The Group has incorporated the United Nations Sustainable Development Goals (SDGs) into its strategy, prioritising their dissemination and actively participating in the effort to meet them through targeted policies, actions and social programs. For each ESG pillar (Environment – Society – Corporate Governance), the Group has set short, medium and longterm objectives, which are monitored and reshaped in line with the Group’s transformation strategy.

The EU Taxonomy (Regulation (EU) 2020/852) is one of the European Commission’s key tools for achieving the climate neutrality objective by 2050.

It facilitates the channelling of funds to activities that significantly contribute to achieving the objectives of the European Green Deal such as climate neutrality, resilience, zero pollution, conservation of biodiversity and ecosystems, transition to a circular economy and sustainable use of water and marine resources.

In accordance with the Taxonomy Regulation, HELLENiQ ENERGY submitted its first report in 2022 (financial year: 2021). The report for 2023 (financial year: 2022) is available in the 2023 Annual Financial Report  (pp. 111-145).

HELLENiQ ENERGY has identified a total of seventytwo (72) economic activities as eligible under twelve (12) broader economic activities defined in the EU Taxonomy, relating to the CCM (Climate Change Mitigation), CCA (Climate Change Adaptation), WTR (Water and Marine Resources) and CE (Circular Economy) objectives.

However, the Group has not identified economic activities that are eligible for the other two objectives, PPC (Pollution Prevention and Control) and BIO (Biodiversity and Ecosystems). Among the 72 eligible economic activities identified under twelve economic activities defined in the EU Taxonomy, fifty-five (55) activities meet the criteria of significant contribution (SCC) to climate change mitigation (CCM) across five economic activities defined by the EU Taxonomy.

Following the eligibility and alignment screening against EU Taxonomy for all the Group’s activities, as detailed in the 2023 Annual Financial Report, a summary of the results is as follows.

HELLENiQ ENERGY participates in international initiatives and undergoes assessments by international organisations and independent bodies that use indicators to evaluate its economic, environmental, and social performance. True to its commitment to transparently, the Group has been disclosing its performance for several years, following internationally  recognised standards and ESG reporting frameworks. Additionally, it is worth mentioning that HELLENiQ ENERGY has been included in the Financial Times Stock Exchange-Russell Group Sustainability Index, the FTSE4Good Index Series, since 2016 and the ATHEX ESG since 2021.