Sustainable Development Report 2019
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SUSTAINABLE DEVELOPMENT REPORT 2019 1 4 ELLAKTOR GROUP 10 ENVIRONMENT 78 1.1 Group Presentation 12 4.1 Contribution to the increase of 1.2 Business model 26 Renewable Energy Resources 1.3 Materiality analysis 31 availability and reliability 80 1.4 Sustainable Development 4.2 Contribution to Circular Economy 84 Goals 34 4.3 Management of Environmental 1.5 Stakeholder Engagement 37 Footprint 87 1.6 Group Strategic Priorities 4.4 Biodiversity 100 and Targets 40 2 5 MESSAGE FROM THE CHAIRMAN 06 OPERATION 46 SOCIETY 104 2.1 Governance 48 5.1 Creating Value for Society 106 2.2 Compliance 51 5.2 Supply Chain 110 2.3 Risk Management and 5.3 Communicating with Local Business Continuity 54 Communities 112 2.4 Digital Transformation 58 5.4 Contributing to Society 112 3 6 AT A GLANCE 2019 08 EMPLOYEES 60 APPENDIX 118 3.1 Working Environment 62 6.1 Report Methodology 120 3.2 Health and Safety 71 6.2 GRI Standards Table 121 6.3 Athens Stock Exchange ESG Reporting Guide Table 129 6.4 UN Global Compact Table 131 recognised corporate governance principles, complies With respect to the Group’s occupational health and in the areas where it operates, emphasising on improv- with business ethics values and fosters sustainable safety, a fatal accident involving an AKTOR employee took ing local infrastructure and the residents’ quality of life. development. place in 2019. Following this event, emphasis was placed The total amount of social contributions amounted to on the establishment of specific indicators, in order to € 2.5 mil. For the first time, the Group systematically evaluated monitor the health and safety performance of the its operation with respect to the UN’s 2030 Sustainable Group’s projects and activities on a continuous basis. In 2020, taking into account the COVID-19 pandemic, the Development Goals and the risks and opportunities that Group’s main concern is to sustain its business continuity the external environment presents for the implemen- Through RES projects, the Group contributed towards and implement its investment plan by taking all neces- tation of the Group’s business model and its reputation, the increase of Renewable Energy Resources availability sary measures to secure the health and safety of its while it simultaneously recorded its future priorities and and reliability, access to clean and affordable energy, as employees, subcontractor employees as well as the challenges. Based on the results of the evaluation, a well as the mitigation of climate change impacts. In 2019, users of its services and the customers. At the same Group-wide sustainable development strategy was the Group added 105.6 MW to its wind farms’ total installed time, particular emphasis is given to the systematic developed, while at the same time measurable short- capacity, while in early 2020 another 90 MW were put implementation of the targets that have been set for term and medium-term targets were established for all into trial operation. The total installed capacity of the all sustainable development topics. These targets both areas of its operation. Group’s wind farms amounted to 401 MW in late 2019, affect and are affected by the Group’s operation, while while from early 2020 it increased to 491 MW. the transformation of the Group’s operation is based on The Group’s top priority remain the creation and distribu- their achievement. tion of economic value in parallel with the return to In 2019, ELLAKTOR Group generated a total of 909 GWh profitability, emphasising in the Concessions and Renew- of electricity from RES. During the same period, the Οn behalf of the ELLAKTOR Group’s Board of Directors able Energy Sources segments, strengthening the Group consumed 180 GWh for its operation. Therefore, Environment segment and restructuring the Construction the generation of electricity from RES in 2019 surpassed Georgios Provopoulos segment by focusing on its activities in Greece, Romania the total energy consumption fivefold. Chairman and Qatar (only for facilities management). The Group’s contribution to Circular Economy and to the Leveraging on its strategic focus towards investments decrease of solid waste disposed in landfills is significant. in RES projects, the Group, in late 2019 and early 2020, In 2019, the Group managed more than 428 thousand proceeded with the successful issuance of an interna- tons of mixed municipal solid waste, out of which 38% tional green bond, amounting to € 670 mil., which consti- was separated and utilised through reuse, recycling or tutes the largest high yield green bond in Europe for other methods. 2019 and the first one in Greece. It is a great pleasure to present ELLAKTOR Group’s 2nd We recognise that investments in the innovation and Sustainable Development Report, following the election With regards to its human resources, the Group’s goal digital transformation of our operation constitute a of the Group’s new Board of Directors in July 2018, which is to continue to create high-quality employment significantly important factor for the Group’s continuous marked a major change in the Group’s strategy and opportunities and utilise the workforce from the local growth and for safeguarding its business continuity. This management. communities in which it operates in, as well as establish became particularly evident during the outbreak of the a healthy and safe working environment that fosters the COVID-19 pandemic in early 2020, during which the 2019 was a year of major restructuring for the Group, professional development of its employees. In 2019, Group's plan to implement rotating and remote working with the creation and staffing of new Divisions and four (4) new departments were created in the Human was expedited, in order to ensure that employees could departments as well as the development of new Group Resources Division and group-wide policies and proce- continue to work safely. policies and procedures, all of which contribute towards dures were established in regard to employee benefits, the Group’s transformation into a modern organisation training, evaluation and development and the utilisation With regards to the Group’s social contribution, in 2019, that continuously grows, improves its internationally of existing staff to fill open positions. it continued to invest in the support of local communities 5 2019 CONCESSIONS ENVIRONMENT RENEWABLE CONSTRUCTION REAL ESTATE ENERGY SOURCES DEVELOPMENT of net sales from sustainable € 1,273,630 thousand 11% products and services in consolidated net sales Greece 286,500 €1.35 bil. 5.5 thousand vehicles crossings backlog in Construction Smart Park on daily average visitors 32,819 hours employee training 429 thousand 25 438 MW tn of third-party waste wind farms capacity from employees €213.6 mil. 5,458 RES in Greece (incl. subsidiaries and joint ventures) employee benefits under management of third-party waste of the Group's waste was MWh treated was utilised 2 biogas 909 GWh 179,743 utilised and did not end up 38% of energy consumed 61% in a landfill through processes exploitation electricity of reuse, recycling, plants generation etc. from RES €2,405 thousand of supplies procured from invested in the local 93% domestic suppliers community in Greece Note: The data refers to activity in Greece, except for the financial data which refers to the total activity of the Group. 10 11 Depict the Group’s new business model 4 key pillars of the Group’s sustainable developmen strategy were defined ELLAKTOR Group pledged to uphold the Global Compact principles 12 SUSTAINABLE DEVELOPMENT REPORT 2019 ELLAKTOR GROUP 13 1.1 GROUP PRESENTATION International Presence of ELLAKTOR Group ELLAKTOR Group is the largest infrastructure group in Greece with an international Operating in € 1,273.6 mil. presence, nearly 5,975 employees (excluding Joint Ventures) and a turnover of turnover 29 countries 1,273.6 mil. (Group financial results). It consists of more than 100 companies, more than 20 affiliated companies and 150 joint ventures. More than More than 20 years after the triple merger of Elliniki Technodomiki, AKTOR and TEV which led 100companies 20 affiliated companies to the creation of ELLAKTOR, the Group is redefined by setting modern corporate Approximately governance as a cornerstone and by giving priority to enhancing Group operations, to reorganising its capital structure and to further capitalising on synergies, in order 150 joint ventures to provide increased added value to its shareholders, its employees and the Greek economy. 1 country AFRICA 6 countries ASIA 1 country OCEANIA 7countries AMERICA 14 countries EUROPE Key Sectors In 2019, operating in 29 countries, ELLAKTOR Group Draft Merger Agreement, stipulating the absorption of brought life into projects that accelerate growth and ELLINIKI TECHNODOMIKI ANEMOS from ELLAKTOR. improve the quality of life in communities across the The absorption was completed in July 2019. world. All Group companies as well as the joint ventures where On March 2019, the Board of Directors of ELLAKTOR the Group is a part of, are presented in the Annual CONCESSIONS ENVIRONMENT RENEWABLE CONSTRUCTION REAL ESTATE and ELLINIKI TECHNODOMIKI ANEMOS approved the Financial Report 2019. ENERGY SOURCES DEVELOPMENT 14 SUSTAINABLE DEVELOPMENT REPORT 2019 ELLAKTOR GROUP 15 CONCESSIONS ELLAKTOR Group is active in the Concessions segment through its subsidiary, AKTOR CONCESSIONS, which is a Important events Risk and uncertainties leader in concessions projects in Greece. The Concessions segment consists of shares in the largest and most modern motorways in Greece, in parking buildings and marines. The Concessions segment of ELLAKTOR Group In 2019, the revenues from the Concessions segment Depending on prevailing economic circumstances, there has vast experience that covers the whole spectrum of needs relevant to concessions, whether it is design, stood at € 239.9 million, compared to € 240.6 million is a risk of reduced vehicle traffic flows and therefore financing and construction or maintenance and operation.