Stakeholder involvement is crucial to ensure that the Group's activities are developed responsibly and coherently. By including social and environmental issues in our relations with stakeholders, we aim not only to contribute to building a sustainable society and preserving the environment for future generations, but also to encourage others to contribute. In carrying out our activities, we strive to take into account the interests of our stakeholders and to make decisions that meet their best interests.
Managing stakeholder relations
The main ways we manage relations with each stakeholder are described the document below. For details of our actions to meet stakeholders' expectations for the Group's sustainability, please refer to the 2021 Sustainability Report.
Shaping our priorities
In 2021, we involved a wide range of our stakeholders in determining our sustainability activities. We conducted a materiality assessment, during which we asked our customers, employees, partners and others how the Group could best contribute to environmental sustainability and societal issues. Nearly three thousand respondents shared their views with us. We invite you to read the full report here.
Considering stakeholders' expectations is an important part of shaping sustainability priorities. During strategic sessions, the Group's management discussed how the expressed views can be best embedded into, and served by, the Group's strategy. The matrix below illustrates the outcome of these discussions – the sustainability topics that are important to our Group, also showing how each topic reflects stakeholder opinions and our strategic priorities.
The full matrix systematizes the most relevant aspects of sustainability for the Group and provides a roadmap to help create the greatest positive impact for both the company and its stakeholders. We continue to develop sustainability goals and their implementation programs in priority areas.
Sustainability priorities and targets
Climate change is one of the greatest challenges facing humanity in this century, and the actions of everyone – states, businesses, non-governmental organisations, and society – are important. Although energy drives the economy, its production accounts for a significant share of greenhouse gas (GHG) emissions. Therefore, the transformation and decarbonisation of the energy sector are prerequisites for the implementation of the Paris Agreement and for limiting the average global temperature increase to 1.5 °C compared to the pre-industrial revolution levels. Energy is the key sector in the European Union’s policy to achieve climate neutrality by 2050.
We are one of the leaders in green energy: we do not operate coal-fired or nuclear power plants, we consistently increase our Green Generation capacity and the volume of generated green energy in both electricity and heat generation. Our business strategy is based on the development of onshore and offshore wind, waste-to-energy, biofuel and solar energy technologies at all project stages. We also maintain significant hydropower capacity in Lithuania.
Read more about our strategy and strategic plan, which are based on Green Generation expansion, here.
2022–2025 strategic goal – reach 2.0–2.2 GW installed green generation capacity.
Being aware of the threats posed by climate change and taking a responsible approach to reducing GHG emissions, Ignitis Group joined the Business Ambition for 1.5 °C of the United Nations and other international organisations in December 2019, and thus committed itself to achieving net zero emissions by 2050 and to setting intermediate emission reduction targets. Reaching net zero means maintaining a balance between emissions emitted to and emissions removed from the atmosphere. We will reach this balance when the emissions emitted by us do not exceed the emissions removed.
Read more about our emissions in the sections ‘GHG emissions’ and ‘GHG reduction targets’.
2022–2025 strategic goal – 23% GHG emissions reduction (vs. 2020). The goal includes emissions from scopes 1, 2, 3 and emissions of biogenic origin. 2020 is the baseline for validated science-based targets by 2030.
The generation and distribution of energy and the development of renewable energy not only create the conditions necessary for our daily lives, but also have an impact on the natural environment we are a part of. Developing renewable energy generation reduces GHG emissions, thus mitigating the impact on climate. However, renewable energy projects (wind farms, solar parks and hydropower) as well as ancillary infrastructure pose threats and challenges to biodiversity. Therefore, we regularly examine the impact of our activities on ecosystems and biodiversity, manage the waste generated by our activities, and strive for a balance between business operations and the preservation of ecosystems and resources.
As the European Union takes the course of the Green Deal, there is an increasing emphasis on the responsible approach and involvement of consumers, communities, public, private, and non-governmental sectors in reducing waste. Resource efficiency and circular economy are becoming increasingly important at local, national, European and global levels as a way to achieve sustainable consumption and production goals.
Based on the latest data from Eurostat, an average Lithuanian resident generated approximately 483 kg of waste in 2020 and this number increased by 25% since 2005. Only about half of it is recycled, therefore, the cogeneration power plants of the Group play a major role as an alternative to landfilling. About a quarter of Lithuania’s municipal waste remaining after sorting is converted to energy in the cogeneration power plants of the Group.
The Group addresses the waste issue in two ways:
By promoting rational and sustainable use of resources and materials and improving its waste management practices;
By generating energy using the waste remaining after sorting in two modern cogeneration power plants in Vilnius and Kaunas.
2022–2025 strategic goal – each business segment (Networks, Green Generation, Flexible Generation, Customers & Solutions) is to implement at least one circularity transformation by reducing resource consumption, promoting resource reuse or recycling.
We aim to reduce all direct and indirect negative impact on biodiversity in our operations. In hydropower generation, we ensure fish population protection, and in wind farm and electricity network maintenance operations – bird population protection.
The Group strives to use natural resources efficiently, reduce the impact of energy generation facilities on the people and the environment, implement innovations, effective and secure technologies. We aim to use the best available technologies and exceed the minimum requirements. Therefore, we are monitoring the impact on biodiversity and protected species, about which you can read more here. By 2025, we are aiming to reduce negative impact on biodiversity and, by working together with environmental experts, to develop projects that could, when the impact on species and ecosystems cannot be reduced due to the specificity of operations, compensate the impact with projects on restoring ecosystems.
2022–2025 strategic goal – create net gain in biodiversity.
An energy smart world is created by our employees. It is important that employees work in safe conditions, have proper competences and can express themselves in their work. It is also strategically important to the Group to attract talents from various groups in society and promote an inclusive environment.
The Group is one of the largest employers in Lithuania, therefore, it forms and seeks to maintain an organisational culture that fosters long-term employer-employee partnerships based on the Group’s values and the Code of Ethics, mutual understanding and the opportunity to create an energy smart future. We carry out our activities and pursue our goals while protecting not only the environment but also the wellbeing of our employees: for us, this is a precondition for sustainable operations. Therefore, the Group is constantly developing, searching for and testing different tools that could contribute to the wellbeing of its employees.
The majority of the Group’s employees work in the fields of energy generation and distribution, where they regularly face potential hazards, so it is important for the Group to emphasise occupational health and safety. The Group adheres to the Zero Tolerance for Accidents at Work Policy. The policy implementation requires complying with the mandatory requirements, a well-planned and implemented OSH management system, creating a safety culture, and fostering a safety-oriented mindset of the employees. Top-level executives are responsible for a safe and healthy work environment, and a safety culture is perceived as a part of the organisation’s culture. The Group maintains an active dialogue with its employees on health care, monitoring, maintenance of a safe and clean work environment, and improvement of health and safety conditions at work. A large part of the Group’s works is performed by contractors; therefore, the Group seeks to work more closely with contractors to apply good occupational safety practices.
We monitor employee safety indicators in all Group companies. The main progress indicator – TRIR (total recordable injury rate) – measures injuries per million hours worked.
2022–2025 strategic goal – 0 employee and contractor fatalities and employee TRIR <1.90.
The Group strives to be the best place to work. The Group has been conducting a quarterly employee experience survey since 2019 to monitor employee engagement and satisfaction, which provides a comprehensive picture of how an employee feels at various stages of our company’s activities. Employees are asked if they would recommend the company to their acquaintances, and the result of answering this question determines the eNPS (Employee Net Promoter) score of the Group. eNPS is included among the Group’s strategic indicators and is one of the key indicators of employee experience. In addition to the key eNPS question, we ask other questions related to education, motivation, daily activities and performance evaluation. The answers to these questions form a generalised assessment of employee experience in these four different processes.
2022–2025 strategic goal – at least 50% net share of employees promote the Group as an employer (eNPS).
We value employee diversity and strive to ensure equal opportunities for all our employees to fully participate in the organisation’s activities. It means equal opportunities to gain employment, work successfully, receive a fair salary, feel good, grow, pursue a career, combine work and personal life, and strengthen personal skills and talents. Therefore, as set out in the Group Equal Opportunity and Diversity Policy, the Group companies do not tolerate discrimination, they promote a work environment that reflects the diversity of society, and implement the principles of respect for diversity in their activities.
The benefits of employee diversity for teams and the organisation as a whole are also important to the Group. When the Group consists of diverse people who feel engaged, valued, and have equal opportunities, this diversity brings better solutions, innovation, creativity, risk resilience, productivity, and employee loyalty. Traditionally, the energy sector is dominated by men – according to the research conducted by Equal by 2030, which analysed 140 energy companies, women comprised a 23% share of employees. In top management – only 18%. Therefore, the Group gives a lot of attention to improving this metric by implementing targeted initiatives of attracting women, promoting internal career opportunities, creating an inclusive environment and providing all employees benefits that allow to reconcile work and family responsibilities better.
2022–2025 strategic goal – at least 34% share of women in top management.
A robust organisation is an organisation that is strong, ready for future changes and which stakeholders can trust.
We strive to be transparent and apply good governance practices while maintaining relations with stakeholders. Maintaining close relations with the communities where we operate, governmental institutions, shareholders, customers, non-governmental organisations and other stakeholders is one of the key principles of our transparent and responsible operations set out in the Code of Ethics and the Sustainability Policy. We operate in a consistent and transparent manner, taking responsibility for our activities and cooperating with various organisations.
Transparency, anti-corruption and the fulfilment of one’s responsibilities form the basis of a responsible and successful organisation. We are constantly strengthening the development of the principles of responsible business. We do not tolerate any form of corruption, and adhere to high standards of ethics, accountability and transparency. The EU documents regulating market abuse as well as documents and guidelines of the Bank of Lithuania, Nasdaq Vilnius, the London Stock Exchange, and other European securities and market institutions are integrated into our day-today activities.
2022–2025 strategic goal – ≥95% corruption intolerance among employees (assessment based on the results of the annual corruption awareness survey).
One of the features of a robust organisation is its preparedness and resilience to various changes in the future. Considering the European Green Deal, the ambition of Lithuania and the neighbouring countries to couple the development of the economy with sustainability criteria, the strengthening of sustainability of a company’s operations becomes a precondition for a long-term success.
In our vision, we transform for a more sustainable world. The Group is planning further investments into Green Generation development, increasing distribution network efficiency, EV charging station development projects. This way, we will ensure that the company’s growth does not increase its negative impact on the environment and the public and instead contributes to positive changes in green transformation.
The EU Taxonomy is a classification system of economic activities which contribute to environmental objectives of the European Green Deal, and it defines also the sustainability criteria that should be implemented in order to ensure a positive impact on the environment. The Group strives to link one of its growth indicators – adjusted EBITDA – to the criteria of the EU Taxonomy. This way we are shaping a reliable, resilient organisation.
2022–2025 strategic goal – sustainable share of adjusted EBITDA is at least 70%.
Sustainable Development Goals
We integrate environmental, social responsibility and good governance criteria into our business goals, which are in line with the United Nations Sustainable Development Goals (SDGs). We contribute to the implementation of all SDGs, focusing on five, the pursuit of which allows us to make a significant contribution.
Our contribution to ensuring that everyone has access to affordable, reliable, sustainable and modern energy:
- We ensure the availability of energy services,
- We develop renewable energy,
- We promote the development and consumption of clean energy,
- We implement innovations in energy.
Our contribution to sustainable economic growth and efficient employment:
- We ensure equal working and salary conditions for employees,
- We fully respect human rights and freedoms,
- We do not tolerate any form of discrimination or harassment,
- We maintain a culture of safe work.
Our contribution to the development of flexible infrastructure, promoting inclusive and sustainable industrialization and innovation:
- We invest in sustainable infrastructure and its improvement,
- We contribute to research, invest in development projects,
- We support international cooperation,
- We help to develop innovations that benefit society.
Our contribution to responsible consumption and production:
- We pay great attention to the selection of reliable partners and ensuring a fair partnership,
- We promote responsible energy consumption,
- When developing products and services, we strive to use resources efficiently,
- We promote waste sorting and rational management and use of resources,
- We develop green energy production capacity.
Our contribution to urgent action to combat climate change and its effects:
- We are implementing a decarbonisation strategy,
- We reduce the environmental impact of our operations and aim to manage emissions in order to eventually become CO2 neutral,
- We adhere to the highest environmental and ecological standards,
- We increase the resilience of energy infrastructure and adaptation to the effects of climate change.