EPSO-G announces audited Sustainability Performance Report for 2023 and revises the baseline for the KPI1 under the terms of the Bond Prospectus
EPSO-G (company code: 302826889, registered office address Laisvės pr. 10, Vilnius, Lithuania) (the Group) announces the 2023 Sustainability Performance Report (the Performance Report), including an Independent Limited Assurance Report. The Independent Limited Assurance of the Performance Report has been carried out by PricewaterhouseCoopers.
In 2024, EPSO-G revised its methodology for calculating the Group 's greenhouse gas (GHG) emissions to enhance the accuracy of its emission estimates. In accordance with the International GHG Protocol 's Corporate Accounting and Reporting Standard and good practice in emissions accounting, the Scope 1 and Scope 2 GHG emissions values for the 2019 baseline (KPI1) have been recalculated.
EPSO-G issued a EUR 75 million sustainability-related bond ISIN LT0000406530 (the Bond) on 7 June 2022. Under the terms of the bond, EPSO-G committed to achieving sustainability performance target (SPT1) to reduce its Scope 1 and Scope 2 GHG emissions (tCO2e) by 30% by 2026, compared to the 2019 baseline.
| Key Performance Indicator (KPI1) | Baseline value (tCO2e) (as of 31 December 2019) | Indicator value (tCO2e) with 30% reduction target by 31 December 2026 (SPT1) | |
| Primary value (tCO2e) | Recalculated value (tCO2e) | ||
| Scope 1 and 2 GHG emissions (tCO2e) (market - based method) | 292,336 | 205,397 | 106,959 (30% lower than the recalculated value of 205,397 tCO2e) |
EPSO-G management emphasizes that although the recalculated value for the first indicator for the 2019 baseline being 30% lower, the Group remains committed to achieving the target to reduce Scope 1 and Scope 2 GHG emissions by 30% by the year 2026, compared to the recalculated 2019 baseline value.
EPSO-G has also approached S&P Global (Shades of Green, acquired from CICERO), the independent Second Party Opinion Provider (SPO) to review the changes of the Group 's GHG emissions calculation methodology related to the KPI1/SPT1 indicators and confirmed that change has no material adverse impact on the SPO opinion originally provided in connection with the Sustainability-linked Financing Framework (Finance Framework) (see Performance Report, ANNEX I).
In the opinion of EPSO-G management, the revision of the 2019 baseline for Scope 1 and Scope 2 GHG emissions does not have any impact on EPSO-G operations or solvency and is not attributed to these factors. Therefore, in the assessment and opinion of EPSO-G management, the adjustment to the methodology for calculating Scope 1 and Scope 2 GHG emissions does not alter the rights and/or obligations of the Noteholders. EPSO-G continues to maintain its obligations to the Noteholders as outlined in the terms of the Notes, and the rights of the Noteholders remain unaffected. Consequently, these changes to the 2019 baseline values of the Scope 1 and Scope 2 were implemented without the consent of the Bondholders, as set out in the Interest Rate Step Up, KPIs and SPTs clause of the Bond Terms and Conditions under (ii) Changes to Key Performance Indicators and/or Sustainability Performance Targets.
PricewaterhouseCoopers has assessed the calculation and disclosure of Scope 1 and Scope 2 GHG emissions, and the Energy Not Supplied (ENS) indicator. The audit firm confirmed in an independent limited assurance report that the EPSO-G Group has calculated the two key performance indicators for 2023 in compliance with the criteria for disclosure of the sustainability indicators. Additionally, the audit firm verified in this independent limited assurance report that the recalculated value for Scope 1 and Scope 2 GHG emissions for the 2019 baseline were calculated and disclosed in accordance with the expected disclosure criteria.
The Performance Report provides the latest information on the progress of the Group 's key sustainability-related performance indicators in the implementation of both the 2022 EPSO-G Finance Framework and the commitments made by EPSO-G under the 7 June 2022 Agreement. EPSO-G EUR 75 million Sustainability Bond Prospectus (EUR 75,000,000 3.117 per cent. Senior Unsecured Sustainability-Linked Notes due 2027).
This Performance Report should be read in conjunction with EPSO-G 2023 Consolidated Annual Report, which contains information relating to sustainability and other significant developments of the Group. The Consolidated Annual Report is presented together with the independent auditor 's report on the audit of the separate and consolidated financial statements for the year ended 31 December 2023.
The EPSO-G group of companies consists of the holding company EPSO-G and its five direct subsidiaries Amber Grid, Baltpool, Energy Cells, Litgrid and Tetas. EPSO-G and its Group companies also hold shares in GET Baltic, Baltic RCC OÜ and TSO Holding AS. The rights and obligations of the sole shareholder of EPSO-G are exercised by the Ministry of Energy of the Republic of Lithuania.
Enclosed: EPSO-G Sustainability Performance Report for 2023
For more information, contact
Tomas Bašarovas, communication partner of EPSO-G
Tel: +370 610 63306, email: tomas.basarovas@epsog.lt
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