Corporate Social Responsibility and Sustainability Report 2016
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Public Power Corporation S.A. 30 Halkokondyli St., Athens GR-10432, Τel.: +30 210 523 0301 www.dei.gr CONTENTS CONTENTS 1. MESSAGE FROM THE CHAIRMAN AND CEO 6 2. ABOUT THE REPORT 10 3. PPC CORPORATE PROFILE 14 3.1. ACTIVITIES 14 3.2 SHAREHOLDER STRUCTURE 20 3.3 HOLDINGS IN SUBSIDIARIES 20 3.4 CORPORATE GOVERNANCE FRAMEWORK 21 3.5 ADMINISTRATIVE ORGANISATION 21 3.6 GOVERNANCE STRUCTURE 23 3.7 CONFLICT OF INTEREST 26 3.8 AUDITS 26 3.9 RISK AND CRISIS MANAGEMENT 27 3.10 ENERGY MARKET OPERATIONS AND PUBLIC POLICY 29 3.11 NEW MARKETS AND INVESTMENTS 32 3.12 KEY FINANCIAL INFORMATION 33 4. SUSTAINABLE DEVELOPMENT 36 4.1 MANAGEMENT APPROACH 36 4.2 GOVERNANCE FOR SUSTAINABLE DEVELOPMENT ISSUES 41 4.3 MATERIALITY ANALYSIS 42 4.4 STAKEHOLDERS 48 4.5 MEMBERSHIP OF ASSOCIATIONS AND ORGANISATIONS 53 4.6 AWARDS - DISTINCTIONS 53 4.7 KEY CORPORATE SOCIAL RESPONSIBILITY PERFORMANCE DATA 54 4.8 COMMITMENTS - GOALS 56 5. EMPLOYEES 60 5.1 HUMAN RESOURCES DATA 60 5.2 TRAINING AND DEVELOPMENT 67 5.3 EMPLOYEE EVALUATION AND BENEFITS 69 5.4 EQUAL OPPORTUNITIES AND RESPECT FOR HUMAN RIGHTS 70 5.5 HEALTH & SAFETY 70 5.6 INTERNAL COMMUNICATION 78 5.7 REGULATORY AND LEGISLATIVE COMPLIANCE 79 4 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT 2016 6. ENVIRONMENT 80 6.1 ENVIRONMENTAL MANAGEMENT 80 6.2 CONSUMPTION OF RAW MATERIALS, FUELS AND ENERGY 83 6.3 GREENHOUSE GAS AND OTHER GAS EMISSIONS 85 6.4 ACTIONS TO REDUCE GREENHOUSE GAS EMISSIONS 92 6.5 WATER MANAGEMENT 95 6.6 WASTE MANAGEMENT - USE OF BY-PRODUCTS 100 6.7 BIODIVERSITY 105 6.8 REGULATORY AND LEGISLATIVE COMPLIANCE 109 7. MARKET AND CUSTOMERS 110 7.1 PRODUCTS AND SERVICES 110 7.2 CUSTOMER RELATIONSHIP MANAGEMENT 118 7.3 RESPONSIBLE AND SAFE ENERGY USE 121 7.4 MARKETING COMMUNICATION PLANS 122 7.5 RESPONSIBLE PROCUREMENT 123 7.6 REGULATORY AND LEGISLATIVE COMPLIANCE 124 8. CONTRIBUTION TO SOCIETY 126 8.1 LOCAL COMMUNITY DEVELOPMENT PROGRAMMES 126 8.2 SPONSORSHIP PROGRAMMES 133 8.3 PARTNERSHIP WITH ARCHAEOLOGICAL SERVICES 136 8.4 EMPLOYEE VOLUNTEER INITIATIVES 137 8.5 OTHER INITIATIVES 137 9. ABBREVIATIONS 142 10. ALLIGNMENT WITH PRINCIPLES AND STANDARDS 144 10.1 GRI GUIDELINES 145 10.2 THE AA1000 ACCOUNTABILITY STANDARD 150 10.3 GREEK SUSTAINABILITY CODE - DECLARATION OF CONFORMITY 150 11. EXTERNAL ASSURANCE STATEMENT 152 12. FEEDBACK FORM 156 5 1. MESSAGE FROM THE CHAIRMAN AND CEO Three fundamental values guide PPC in everything it does: the Environment, Society and the Economy. We remain firmly focused on growing and developing Greece’s largest corporation, and as we successfully adjust to the new environment, the focus of what we do remains unchanged: to serve society as a whole. Because we can and must do our very best for society. We need to be passionate about even the smallest tasks, as if overcoming the crisis and Greece’s development We are proud depended on it. We are fully aware that the work each of us does will help create new jobs, thereby combating to have exemplified the scourge of unemployment. We refuse to rest on our laurels or pat ourselves on the back; we our guiding declare that over the past year we are proud to have exemplified PPC’s values guiding values, yet at the same time we want it to be clearly understood that we still have much to do ... ...when it comes to the Environment: We withdrew old, polluting plants from service, building new thermal and hydroelectric plants which integrate cutting- edge, environmentally-friendly technologies in line with Best Available Techniques. We have continued our expansion 6 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT 2016 into the renewable energy sources sector at a rapid pace. In December 2016 PPC Renewables S.A. announced it was partnering with the European Investment Bank (EIB) in a project worth € 85 million covering the fields of wind and hydroelectric power. We rehabilitated 4,000 ha of land at the Western Macedonia Lignite Centre and 700 ha at the Megalopolis Lignite Centre. We met the needs of large corporations which are our customers engaged in environmental activities, having provided 1.2 million Guarantees of Origin for RES up to 2017. ... when it comes to Society: We’ve offered more than € 850 thousand in sponsorship and donations, supporting local communities organise cultural and sporting events. We offered free electricity to 85,000 customers under Law 4320/2015. We continue to run the district heating schemes in Kozani, Ptolemaida, Amynteo and Megalopolis. 2.1 million GJ of power were used as part of those schemes. District heating schemes offer a model for sustainable development. They help reduce air pollution because hydrocarbons and wood are not burned to generate heat, and also drastically reduce heating costs for local communities. At the same time, given that Greek society continues to endure financial constraints, we have listened to what our customers need, and have adopted measures to assist them. These include: - around 620,000 repayment plans - inclusion of 660,000 new customers in the Social Residential Tariff - innovative loyalty schemes by Greek standards, rewarding household and business customers who pay regularly by offering them major financial savings. We also listened when it came to better services provided via modern customer service channels. For example: - We handled 2,993,000 calls via the 11770 call centre. - We collaborate with 6,000 partners who offer bill payment services. 7 1. MESSAGE FROM THE CHAIRMAN AND CEO - 730,000 bills are now paid by card. - 730,000 customers are now registered for the e-bill service. - 93,300 customers use our mobile app. ... when it comes to the Economy: We’ve invested close on € 870 million across all sectors we operate in. In strategic terms, to meet the challenges we face we have successfully implemented a series of actions: We arranged and carried through the sale of 24% of Independent Power Transmission operator S.A. (IPTO) to a strategic investor in record time, making a decisive contribution to ensuring that control remained with the state. Despite the liquidity squeeze faced by Greek banks, we secured € 65 million from the National Bank of Greece and € 80 million from the European Investment Bank. We set up an office in Brussels as part of our partnership with major Chinese firms and also founded a branch in Tirana; both proof positive of the Corporation’s outward focus and its expansion into new markets. Given that none of this is possible without an ever expanding staff base, we have also developed a new staff evaluation system to improve our administrative operations, and, above all, to change our corporate culture as we become a competitive, outward looking, customer-centred business. Since the transformation of the company will be completed during 2017, our priorities are to: Prepare and start implementing a comprehensive Strategic Plan. Work on the plan is currently under way. Improve our administrative operations in all sectors. Improve HRM to allow our staff to grow and develop, and us to utilise them to their full potential. 8 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT 2016 Improve customer relations through targeted actions, business initiatives and products based on a comprehensive marketing plan. Add to our staff through targeted recruitment drives so that all current needs are met, to ensure PPC is synonymous with modern skills and technology, and to create the conditions for existing precious know- how and skills to be transferred by company staff to a new generation of employees. Undertake major projects and business initiatives abroad in partnership with companies from Greece and abroad. In taking these steps our goal is a Corporation with a smaller market share but a continuing dominant role in Greece’s electricity market, but also a larger, more robust company with a diverse range of operations and products, as it expands into new markets. We continue to strive for Our focus this by promoting our three core Corporate Social Responsibility goals of Environment - Society - Economy which have been central to the remains corporation for many years now. This is an endeavour we will continue and unchanged: intensify in 2017. to serve society as a whole 9 2. ABOUT THE REPORT The Corporate Social Responsibility and Sustainability Report 2016 covers the period 1.1.2016 to 31.12.2016 and is PPC’s seventh sustainability report. Scope and Boundary The Report refers to the activities of the parent Corporation, namely the Public Power Corporation S.A. (hereinafter «PPC» or the «Corporation») in Greece. Data relating to subsidiaries, possible joint ventures, suppliers or third parties have not been included in the The report’s Report. content was Where data have been revised, the reasons for such revisions are defined following indicated. the principles of inclusiveness, Defining Content The Report seeks to present materiality, PPC’s performance on Corporate sustainability Social Responsibility (CSR) and sustainable development issues, by and completeness examining the three core issues of Economy, Environment and Society. It is aimed at all the Corporation’s stakeholder groups, such as customers, shareholders and investors, associates, employees, institutional and public bodies, and local communities. The Report has been prepared in accordance with the Global Reporting Initiative guidelines (GRI - version G4). The process for defining the report’s content was based on the GRI G4 guidelines, as well as the principles of inclusiveness, materiality, sustainability and completeness, and the related GRI Technical Protocols for Indicators MEGALOPOLIS STEAM ELECTRIC PLANT - UNIT V are included. Moreover, the GRI - 10 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT 2016 Electric Utilities Sector Supplement, the principles of the Accountability AA1000 standard on inclusiveness, materiality and responsiveness, the criteria in the Hellenic Sustainability Code, stakeholders’ expectations and the characteristics of Greek society were also taken into consideration.