About us

Sustainability
Our approach to sustainability
 
EPSO-G has a key role in ensuring a smooth and reliable transition within the Lithuanian energy system through integrating high volumes of renewable energy sources, enabling decarbonisation of the sector, initiating system interconnection projects and facilitating climate-neutral energy exchanges.
 
EPSO-G’s mission is to enable a sustainable and efficient energy exchange. This mission provides a clear direction for our long-term strategy and operations, in which sustainability considerations are fully integrated. EPSO-G’s strategy also reflects the United Nations Sustainable Development Goals (“SDGs”). Five of these goals have been identified as most relevant to the group companies and as goals to which EPSO-G can provide the most meaningful contribution.
 
For EPSO-G, sustainability means transforming the energy sector in a balanced manner between environmental, social, and economic goals, thus empowering the establishment of a climate-neutral economy. EPSO-G is taking responsibility for coming generations by contributing to sustainable development and engaging all stakeholders environmentally, socially, and economically. 
 

Sustainability directions

EPSO-G has set three long-term directions in the areas of environment, social and economic performance in respect to relevant SDGs:

EPSO-G also aims to contribute directly to the United Nations Sustainable Development Goals by focusing on ensuring access to affordable clean and modern energy, combating climate change, developing modern infrastructure and innovation, creating of safe and decent working conditions, worker well-being, and a sustainable supply chain.
 
EPSO-G contributes to each of the United Nations Sustainable Development Goals by the following actions: 
 

Material topics

In 2022 EPSO-G made a materiality analysis of all topics relevant to the companies' activities and stakeholders. 645 respondents took part in the survey, including company employees, suppliers, customers, business partners, local communities, associations, trade unions, the Ministry of Energy, managers, and board members.

In the sustainability policy, which was approved by the EPSO-G Board in 2021, is stated that the group will have to undertake a regular, but at least biennial, review of the environmental, social and economic topics for sustainability through a materiality assessment, ensuring the involvement of stakeholders.
 

Long-term sustainability goals and results

For each long-term sustainability direction, EPSO-G has set specific targets and indicators to measure the progress of sustainability.

 

Sustainability governance

EPSO-G supports good corporate governance by basing its work on the guidelines laid down in the Ten Principles of the UN Global Compact, OECD’s Good Practice Guidance, the Nasdaq Baltic Stock Exchange, and the Guidelines for Ensuring Transparency in the Operations of the State-Owned Enterprises approved by the Government of the Republic of Lithuania.

The Board oversees the implementation of EPSO-G’s long-term strategy, sustainability obligations, risk, and performance. The foundation of EPSO-G’s sustainability activities is the Sustainability Policy, which provides guidelines for environmental and social issues, human rights, labour relations as well as transparency. It is further based on EPSO-G’s vision, mission and values and it is fundamental in steering the entire group towards sustainable development of its operations. The main directions of the governing principles of sustainability and ESG management are set in EPSO-G’s Sustainability Policy that apply to all companies of the group.

The principles of sustainability are implemented based on the related EPSO-G policies and other valid internal documents:

  • Environmental Policy. This policy defines the key principles in the field of environmental protection, which shall be applied within the group to reduce the environmental impact of the activities carried out and to implement a culture based on the principles of sustainable development within the group and its environment.
  • Equal Opportunities Policy. This policy defines the key principles applied in the group’s companies to ensure that principles of equal opportunities and non-discrimination are respected in all areas of the employment relationship.
  • Remuneration, Employee training, and Performance Review Policy. This policy is intended to properly manage wage costs, create motivational incentives, and to ensure proper personal and professional development, as well as a transparent performance review system, for all employees.
  • Occupational Health and Safety Policy. The policy is aimed at ensuring the health of employees in the workplace and creating a healthy, safe, and productive working environment.
  • Transparency and Communication Policy. The policy is aimed at fostering fair and efficient communication with each other and with the external stakeholders, i.e. society, shareholders, market regulators, etc.
  • Corruption Prevention Policy. The policy sets basic principles and requirements aimed at the prevention of corruption and imposes guidelines for ensuring compliance with them, with the aim of creating conditions for the highest standards of transparent business conduct to be applied in the group.
  • Interest Management Policy. The policy is intended to create an interest management system that is consistent with the common good practice, ensuring that decisions in the companies of the group are made in an objective and impartial manner. It also forms an environment that is unfavourable to corruption.
  • Donations Policy. The policy is intended to ensure that the donations provided are public, cast no doubt in the society regarding its expediency and transparency of the granting process.
  • Procurement Policy. The policy aims to follow good procurement practices of international organisations, the institutions of the European Union and other contracting authorities and contracting entities. It ensures an efficient, dynamic and transparent procurement process, creating added value for the achievement of the goals of EPSO-G’s group companies.
  • Code of Conduct. The policy aims to set the same general guidelines of behaviour for communication and cooperation with internal and external stakeholders: employees, customers, contractors, business partners, shareholders, national and municipal authorities, society, etc.

 

Stakeholders

EPSO-G group assesses and seeks to take into account the social and economic interests and expectations of the stakeholders when implementing its strategy objectives.

Each direction of EPSO-G strategic activities is related to one or several stakeholders. The official, partnership or consultative contacts are maintained with the groups or individuals who express their interest in the activities carried out by EPSO-G group. The stakeholders are provided with comprehensive information related to the activities carried out by the group.

Main stakeholders:

  • Clients
  • Employees
  • Labor unions
  • Shareholders
  • Foreign partners – the operators of energy transmission and biomass exchange
  • National Regulatory Authority
  • Local communities
  • Contractors and suppliers
  • NGOs
  • General public and media

The ways we cooperate and inform our main stakeholders are explained in the stakeholder engagement report.

 

Sustainability Reports

EPSO-G’s Progress Report on Sustainability follows the principles of the UN Global Compact and in accordance with the Global Reporting Initiative Standards (“Core” option) with the goal of assessing performance in relation to economic, environmental, social, and human rights indicators. In addition, the Group follows the reporting principles of the Transparency Guidelines for State-owned Enterprises of the Government of the Republic of Lithuania.

Previous sustainability reports:

EPSO-G social responsibility 2020 progress report

Last updated: 22-08-2022