Sustainable Development

GRI 200

It should be noted that the published indices are not the final ones for 2021 and they are subject to change following the upcoming confirmation that will be performed by the external consulting team in charge of the Sustainability Report 2021 as well as the external independent assurance that will be performed by a separate external consultant in due course.

GRI 201- 1 Direct economic value generated and distributed

(Amount in € thousand)

2021

 

PPC S.A

Turnover

5,399,475

Financial Income

65,222

Direct economic value generated

5,464,697

Operating expenses

4,597,461

Salaries and employee benefits including employer’s contributions  

412,094

Financial Expenses  

251,963 

Payments to government (taxes)

22,179

Social contribution/donations and sponsorships , support to local communities and institutions /organizations etc) 

5,369

Direct economic value distributed  

5,289,066

Undistributed economic value

175,631

 

 

 

GRI 201- 2 Financial implications and other risks and opportunities due to climate change

Having recognized the risk, but also the opportunity that climate change presents for the Company, PPC is planning and implementing a series of actions aimed at lignite phasing out and at increasing the use of renewable energy sources in its energy mix.
During the reporting period, PPC proceeded with the procedures for launching a study in cooperation with the European Bank for Reconstruction and Development to develop an information disclosure plan in accordance with the guidelines of the Task Force on Climate-related Financial Disclosure (TCFD).
One of the benefits of the above study is expected to be the identification and categorization of climate change related risks and the determination of their impact on the Company. Currently, the relevant information is monitored based on the qualitative indicator relating to the integration of ESG (Environmental, Social, Governance) risks into the Company's overall risk identification.
Climate change and the social and political response to it may have a significant impact on the business activities of the Group and the Parent Company. In accordance with the guidelines issued by the "Ad Hoc Team on Disclosure of Climate-related Financial Information", the Group and the Parent Company distinguish between two broad categories of risks related to climate change: risks related to the transition to a lower carbon footprint economy and risks related to the physical impacts of climate change.
Risks related to the transition to a lower carbon footprint economy include risks related to the adoption of strategies and decisions to prevent and mitigate the impact of climate change (e.g. adoption of regulatory incentives and penalties, carbon pricing schemes, energy efficiency solutions, and low-carbon products and services). The implementation of policies to promote the reduction of carbon use may have a significant impact on the operations and value of the Group's thermal power plants. While the Group's strategy for lignite phasing out is actively implemented, the development of the Group's renewable energy sources is still in its infancy and therefore the Group remains dependent on conventional power plants for the majority of its power generation. The Group and the Parent Company believe that they have the largest portfolio of renewable energy projects in Greece, totaling over 10.0 GW. If the Group and the Parent Company are not successful in developing this range of RES projects, they will face challenges from the expectedly hostile regulatory environment and strong competition from greener and more modern producers.
Risks related to the physical impacts of climate change include risks caused by changes in average temperatures, and/or changes in wind patterns and solar radiation. The increased incidence of extreme weather events caused by climate change could also significantly affect power generation  from conventional power plants or from renewable energy sources, as well as the resilience and performance of the Distribution Network. While the Group and the Parent Company regularly monitor and assess these risks and respond to them at both Management and Board level, they may not be able to anticipate, mitigate or adapt to medium- or long-term natural changes associated with certain climate change risks, which may adversely affect their financial position, operations and the results thereof.10. Risks related to climatic conditions and seasonal fluctuations.
Power consumption is subject to seasonal fluctuations and is primarily influenced by climatic conditions. In Greece, power consumption is generally higher in the summer months, with periods of high temperatures causing a sudden increase in demand, a situation that may be exacerbated by climate change leading to warmer weather conditions. However, the huge penetration of RES in power generation has led to significant changes in terms of covering the remaining load and has to be met through thermal and hydroelectric power plants, both in terms of seasonality and in relation to the intra-day load curve. Currently, peak load demand occurs more frequently in the winter period.
Power generation may also depend on climatic conditions. Droughts and/or heat waves, wind speed and direction and sunshine conditions may significantly affect power generation. In very extreme cases, climatic conditions may also cause problems in the supply of liquefied natural gas (LNG).
Weather conditions are beyond the control of the Group and the Parent Company and, therefore, no assurance can be given that, mainly, their hydroelectric plants will be able to meet their expected production levels, as they are depend of the hydrological conditions prevailing from time to time in the geographical areas where the hydroelectric generation facilities are located.
In an average year, about 10.0% of the demand of the Interconnected System is expected to be met by hydroelectric generation. However, given the low capacity of reservoirs in Greece, it is not possible to maintain hydroelectric reserves for long periods of time and, therefore, unstable hydroelectric flows are directly reflected in the operation of the wholesale market. Therefore, in years when hydrological conditions lead to drought or when there are other conditions that adversely affect hydroelectric generation, the Group and the Parent Company must rely more heavily on thermal generation and electricity purchases from abroad and third parties to meet marginal demand, which results in increased operating expenses.
Accordingly, the Group's and the Parent Company's revenues reflect the seasonal nature of power demand and may be adversely affected by significant fluctuations in climatic conditions. In addition, the Group and the Parent Company may make up for the reduced power generated by their power plants, especially during periods of increased demand, by using other means of power generation at higher costs or by resorting to the wholesale market at higher prices, which may have a material adverse effect on their business, results of operations and financial position.

 

GRI 201- 3 Defined benefit plan obligations and other retirement plans

The Company has no pension scheme.

 

 

GRI 205-3 Confirmed incidents of corruption and actions taken

 

PPC S.A 2021

Criminal court convictions on matters falling within the criminal offenses of corruption, abuse of power, embezzlement, theft, infidelity, bribery, fraud, forgery, false testimony or falsification of documents, use of false testimonies, and official secrecy violation (number of court decisions)

1

* Final judgements of civil and criminal courts. The indicator relates to employees of PPC S.A., in the context of exercising their duties by virtue of their status as employees of the Company. The indicator relates to full-time, temporary, or seasonal employees excluding seconded employees, contractors, and their staff.

 

 

 

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